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Author 


Parsons 


inckerhoff 


ade  &  Douglas 


Title 


Report 


rapid  transit 


sy  ste  m  f o  r  th  e  C  ity  of 


Place 


Detroit] 


918 


MASTER  NEGATIVE  « 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

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OMGINAL  MATERIAL  AS  FILMED  •  EXISTING 


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nusiNeas 

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Parsons,  Brinckerhoff ,  Quade  and  Douglas. 

Report  on  a  rapid  transit  system  for  the  tity 
of  Detroit,  made  to  the  Board  of  street  railway 
commissioners,  city  of  Detroit,  by  Barclay  Par- 
sons &  Klapp.    t New  York? 1  1918. 

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REPORT  ON 


A  RAPID  TRANSIT  SYSTEM  FOR 
THE  CITY  OF  DETROIT 

MADE  TO  THE 
BOARD  OF  STREET  RAILWAY  COMMISSIONERS 

CITY  OF  DETROIT 


l.    I      J   ll    *    *    »  *  •■ 

i         II         %.      t  9*        «•  ■■ 


H'     It    J,  Wl'  ' 


.    Hi    4         If         ill    *  * 


BY 

BARCLAY  PARSONS  U  KLAFP 
1918 


WHOOI.  Of 

msiNCss 


in 

TABLE  OF  CONTENTS 

DIGEST  OF  REPORT   i 

INTRODUCTION  ,  m 

A  DtKMin  lUnD  Tbamsr  Pmoam  RsQiinni   10 

CHAPTER  I— GENERAL  BASIS  OF  REPORT   17 

PoruLATioir  Gwwra  or  DBnusr   17 

Dnmnr  m  Povulatsw  ams  Ommsm  RtsnnraM,  MovnoEMT   17 

AttA  OP  Dmnr   19 

Cnft  Sm  Jmrnm  Rato  Tmamux.   19 

TRAinc  QowTH   21 

CoNOsnoN  ON  Surface  Lines   24 

Traffic  Growth  1914  ro  1917.   26 

Transfer  Traffic   28 

Estimated  Rapid  Transit  Traffic   81 

PuBuc  Demand  for  Service   33 

SoMifAiY  OF  Physical  Conditions   34 

CHAPTER  II— RAPID  TRANSIT  PLAN  AND  CONSTRUC- 
TION PROGRAM...   37 

RnntmiAL  I^snmrnoM  of  Population   37 

Emtumaan  DunmmoN  in  Iteiaorr      38 

BuoMNG  Acrmnr  Shown  lY  Qnr  PutMirs.....   88 

ItouM  LiNBS  or  P^miLATioir...   40 

WoOBfWiUW  AVSNUB  TBS  InRIAL  RaHD  TitANSIT  LlMB   40 

Othik  Rafib  TtAirnT  Lnms   41 

Ty?bs  or  Rapid  Transit  Construction   ^ 

Construction  Program  for  Initial  Pbrub   49 

Surface  Line  Extensions.   48 

Intsrurban  Lines   00 

CHAPTER  III— BASIS  OF  UNIFIED  OPERATION   61 

A  Single  Unified  System  of  Surface  and  Rafio  Transit  Liint   61 

Service  Improved  by  Unified  Operation   62 

A  Single  Uniform  Fare  with  Free  Transfers   68 

Ratb  of  Fare  Dependent  Upon  Cost  of  Service   64 

Svmil  TO  mt  &a.F-SUFF0RTING   55 


« 


•IV 

TABLE  OF  CONTIBNTS 

  .   Mflt 


CHAPTER  IV— FINANCIAL  PLAN   m 

     «7 

Qmms  OmATf ms  Imiu'IUs    SB 

Population    68 

Siding  Habit    60 

'iHnuiHiiki  JB"! 

rWm^  •*.•••«   ............<*««..,..   ol 


Ifsiaw  m  FnrAacsiiB   «y 

City  vs.  Compaiqr  FiiMmcing   9t 

City  and  Company  Partnership   117 

City  to  Build  and  Own  Rapid  Transit  Lines   68 

Company  to  Operate  System  Under  Terminable  License   68 

ConyMy^^to^^Siy^  and  Ftnancc  Surface  Lines  and  Extensions  and  AH 

Only  Actual  Interest  Rate  On  City  and  Company  Ftmds  AOotirad   60 

Net  Divisible  Surplus  Shared  Equally     CHy  and  Company   70 

Purchase  Price  to  City    70 

Ownersh^  of  Property  Acquired  by  City  from  its  Share  in  Surplus   70 

'Bmmmm  m  WmMKUM.  Tahis  .  — ..:    71 

ExpuMtmrn  for  InfcttOMnl  m  Road  and  Equipment   71 

Opitaliiation   71 

Operatoig  Statistics,  Operating  Revenue  and  OpmMag  Income   72 

Interest  and  Sinking  Fund   72 

Distribution  of  Net  Divisible  Surplus   73 

Financial  Charts   74 

FlHAMCIAL  TaMJES     78 

CliifJianmt  w  Tyncjit  ALtmiAtivB  FmAKOAi.  Pi.Airs     80 

Pkui  A    :   00 

Flui  B.     00 

¥mm  ,   w 

CHAPTER  V— CONCLUSIONS  AND  RECOMMENDATIONS. . .  os 

Conclusions   9S 

RnCOMMINUATIOllS        90 

APPENDICES   97 

AmNDix  I — Tkansfer  Count    99 

AmxNx  II— TiAFFic  Sroms     MB 

Mmmmnt  m-D.  U.  R.  Tmmm  l«lS-ltl«   107 

AMBnnc  W---4X  17.  R.  lacwAn.  iM  TaaacAa  ...   100 

AmtMHx  V— Pmmciwii  m  Wmmm  Vwmjmm   llO 

AfMHiis  VI— Cost  EsnMAns     11* 

Aifumx  VII— EmuyrMnrr  Svatiotics   110 

Gbmbkal  Imdbx   121 


BOARD  OF  STREET  RAILWAY  CX>MMISSION£RS 

CITY  OF  DETROIT 

1917-1918 

Jouv  F.  Dodos,  Praciieiit  Pkamcu  C.  McMAfi,  Vie»-PMailfliit 

Julius  H.  Haass 


(V) 


Bdward  T.  Fitz  Gbralo,  Secretary 


VII 


BARCLAY  PARSONS  &  KL.AW 

CONSUUTINO  ENOINCCnS 


60  WAt.1.  STREET.  NEW  YORK 


WM,  BARCUAV  PARSONS 

M.M.aRiNCKERHorr 

W.  J.  OOUOI.AS 


December  ist,  19 17 


The  Honorable  Board  of  Street  Railway  Commissioners, 

City  of  Detroit. 

Dear  Sirs: 

We  have  the  honor  of  handing  you  herewith  our  report  on  a  Rafud 
Transit  System  for  the  City  of  Detroit  in  accordance  with  your  instructions 
and  as  covered  in  our  ccmtract  with  you  of  May  21,  1917. 

In  our  previous  rqxMt  to  you  under  date  of  January,  1915,  we  included 
detail  traffic  counts  on  every  car  line  in  the  City  as  well  as  car  route  maps 
and  drawings  showing  subway  construction  details,  rearrangement  of  sewers, 
etc.,  etc.  These  and  similar  matters,  useful  principally  as  a  record  and  for 
future  reference,  we  have  not  repeated  in  the  present  volume,  taking  it  that 
both  reports  will  be  available  to  anyone  wishing  to  go  into  questions  of  detail. 

We  call  special  attention  to  the  financial  chapter  and  the  recommen- 
dations in  this  Rei)ort  for  joint  City  and  Company  ownership  under  commis- 
sion control  as  a  possible  means  of  the  City  ultimately  acquiring  complete 
ownership  of  the  system.  This  discussion  is  of  the  greatest  importance  at 
the  present  time  when  the  financial  conditicMi  of  many  city  transportation 
systems  throughout  the  country  is  so  deplorable. 

We  wish  to  express  again  our  sincere  appreciation  of  the  assistance  and 
hearty  co-operation  of  the  City  officials  and  their  staffs,  as  well  as  that  of  the 
operating  officers  of  the  Detroit  United  Railway,  in  facilitating  the  inves- 
tigati(ms  we  have  made  in  the  preparation  of  this  Report. 

We  are  also  indebted  to  the  Appraisal  Committee  of  the  Detroit  Real 
Estate  Board  for  their  courtesy  in  supplying  carefully  prcfMuned  aj^raisals 
of  rights-of-way  for  proposed  rapid  transit  lines  throogli  various  parts  of 
the  City,  which  service  they  rendered  gratis  to  the  Oty. 

Faithfully  yours, 

Barclay  Parsons  &  Klapp, 

Consulting  Engineers. 


REPORT  ON 

A  RAPID  TRANSIT  SYSTEM 

FOR  THE  CITY  OF  DETROIT 


DIGEST  OF  REPORT 

For  the  convenience  of  the  general  reader  this  digest  or  condensed  state- 
ment of  the  main  features  of  the  Report  has  been  prepared.  Direct  quotaticxis 
from  the  full  text  of  the  Report  have  been  made  in  some  cases. 

This  Report  is  supplemental  to,  and  in  many  respects  a  continuation  of, 
the  Report  made  in  19 15  on  the  same  general  subject.  The  aim  in  the 
present  Report  has  been  to  meet  the  Commissioner's  request  for  a  statement 
as  to  whether  the  growth  of  the  City  of  Detroit,  the  increased  traffic,  and 
conditions  of  street  congestion  do  not  now  warrant  the  initiation  of  a  rapid 
transit  program.  Also,  the  effort  is  made  to  pcnnt  out  along  what  general 
lines  a  rapid  transit  system  should  be  laid  out  for  Detroit  as  it  conttnties  to 
flow.  What  stq»s  should  be  taken  in  building  up  sudi  a  system  to  give 
inmiediate  rdief,  and  whidi  will  provide  llie  nudens  of  a  general  rapid 
transit  system,  are  described. 

The  Report  has  been  divided  into  five  chapters. 

CHAPTER  I— GENERAL  BASIS  OF  REPORT 

This  chapter,  treats  of  past  population  growth  and  increased  area  of  tlM 
City,  together  with  estimates  of  probable  future  increases  in  both  of  these  impor- 
tant items.  The  analysis  shows  that  Detroit  started  its  rapid  period  of  growth 
in  1880  when  the  population  was  140,000,  reaching  by  1900  a  size  of  318,967, 
by  1910  a  size  of  500,982,  and  by  19 17  alx)ut  850,000  people  in  the  City  and 
Suburbs.  The  prediction  made  in  the  191 5  Report  of  1,000,000  population 
by  1920  is  repeated  and  the  further  estimate  of  2.000,000  population  by  1950 
is  set  forth  as  a  reasonable  basis  of  future  traffic  estimates.  In  estimating 
the  population  at  intermediate  dates  the  assumption  is  made  that  the  popu- 
lation will  increase  by  equal  yearly  increments  from  1920  to  1950,  as  it  is 
ccmsidered  futile  to  attempt  detailed  predictions  of  the  fluctuations  which 
will  certainly  occur,  but  which  cannot  be  determined  accurately.  See  pages 
17,  37  to  40,  and  58  to  60. 

I 


f         BSPORT  OM  A  SAPID  TSANUT  SYSTXM  fOR  DETROIT 

The  growth  in  street  car  traffic  is  traced  by  years  on  each  of  the  surface 
street  car  lines  from  1904  to  19 17.  The  total  passengers  in  1904  are  shown 
as  i05,ooo,cxx),  of  which  78,000,000  were  revenue  and  the  balance  transfer 
passengers.  In  191 7  the  total  passengers  carried  were  440,000,000,  with 
315,000,000  revenue,  the  transfers  being  about  39  per  cent  of  the  revenue 
passengers,  as  estimated  by  a  24  hour  check  of  the  whole  system.  By  a  com- 
parison of  population  with  revenue  riders  it  is  shown  that  in  1904  there  were 
collected  248  fares  for  every  person  within  the  City,  while  in  1917  the  fares 
per  capita  had  increased  to  361. 

From  tlicse  facts  it  is  deduced  that  when  the  Gty  has  attained  a 
popnlation  of  1,000,000  in  1920  there  will  be  370  revenue  rides  per  capita 
and  a  total  tbcreliif%  of  370^000,000  revenue  rides  per  annum.  The  very 
conservative  estimate  is  then  made  that  from  this  point  on  the  increase  in 
rides  per  capita  will  be  one  per  year  instead  of  an  average  of  from  five  to 
eight,  as  in  previous  years,  and  that  in  1950,  with  a  population  of  2,000,000 
and  rides  per  capita  of  400,  ^ere  will  be  800^000^000  revenue  riders. 

It  is  interesting  to  note  that  Boston  commenced  its  rapid  transit  program 
when  it  reached  approximatdy  830,000  population.  The  initial  elevated 
railroad  construction,  the  only  form  of  rapid  transit  in  Chicago,  was  com- 
menced when  the  city  was  slightly  over  the  1,000^000  mark  and  Philadel- 
phia's first  rapid  transit  line  was  started  when  the  city  had  approximately 
1,400,000  population. 

Detroit,  in  the  matter  of  size,  has  therefore  reached  the  stage  where 
o^er  cities  eilt«red  upon  their  rapid  transit  development. 

Upon  the  investigation  of  growth  in  population  and  traffic  contained 
in  this  chapter  is  based  the  estimate  of  the  transit  facilities  required  and  the 
earnings  which  may  be  reasonably  expected. 

It  is  not  intended  here  to  urge  the  commencement  of  actual 
construction  of  subways  in  Detroit  at  such  a  time  as  the  present, 
when  all  financial  and  construction  resources  are  under  the  strain 
of  a  great  war.  It  is  intended,  however,  to  point  out  that  a  con- 
siderable number  of  years  must  necessarily  elapse  between  a  decision 
to  build  and  the  commencement  of  successful  operati(m,  and  lHat  of 
this  period  much  of  the  time  must  be  employed  in  the  working  out 
of  the  details  of  agreement,  specifications  and  plans,  which  would 
not  involve  expenditures  of  large  amounts  of  money  and  which, 
when  completed,  would  make  immediate  construction  possible  upon 
the  resumption  of  normal  conditions. 

The  summary  of  physical  conditions,  pages  34  to  35.  gives  briefly  the 
findings  frcMn  the  investigation  conducted  during  the  past  six  months.  . 


DIGEST  OF  REPORT 


3 


CHAPTER  11— RAPID  TRANSIT  PLAN  AND  CONSTRUCTION 

PROGRAM 

The  question  of  locating  the  rapid  transit  lines  so  as  to  serve  l^est  the 

interest  of  the  City  as  it  grows,  is  here  discussed  from  tlie  point  of  view  of 
the  origin  and  destination  of  the  riding  public. 

The  residential  distribution  of  the  population  is  discussed  in  detail  and 

the  fact  is  pointed  out  that  a  line  coinciding  substantially  with  Woodward 

avenue  divides  the  population  of  the  City  into  two  nearly  equal  parts,  east 

and  west  of  that  line.  It  is  further  shown  tliat  an  east  and  west  line  crossing 

Woodward  avenue  at  about  Ferry  street,  two  and  one-half  miles  nortb  of 

tl»  City  Hall,  divides  the  residential  population  into  nearly  equal  parts  north 

and  south.  It  is  also  ^wn, 

*   *   *   that  there  are  an  averse  of  over  28,000  people  per 
mile  of  line  resident  in  a  district  extending  one-half  mile  on  either 

side  of  Woodward  avenue  for  the  first  four  miles  north  of  Grand 
Circus.  Similar  districts  adjacent  to  Gratiot  avenue,  show  an 
average  of  25,000  i^eople  per  mile  of  line;  along  Michigan  avenue, 
20,000;  Fort  street,  16,000,  and  Jefferson  avenue,  11,000  people. 
While  it  is  true  that  dense  residential  districts  do  not  always  pro- 
duce a  proportionate  number  of  passengers,  nevertheless,  the  fore- 
going relative  figures  indicate  clearly  the  importance  of  Woodward 
avenue  and  the  east  and  west  rapid  transit  line  paralleling  Michigan 
and  Gratiot  avenues. 

Having  thus  located  the  residential  end  of  the  daily  journeys  of  passen- 
gers, the  places  of  eniploynient  are  analyzed  by  discussion  of  locations  of 
factory  and  business  centers  and  from  this  analysis  it  is  deduced  that  the  City 
has  been  growing  with  remarkable  uniformity  over  its  entire  area.  The 
factories,  or  points  of  occupation,  have  been  increasing  along  the  railroads 
and  decreasing  along  the  Detroit  river  with  a  tendency  to  and  prospect  of 
great  future  growth  in  the  western  part  of  the  City.  The  general  ^ft  of 
the  re^dential  p(4>ulaticHi,  since  the  last  canvass  and  report,  has  been  a  spread- 
ing into  the  outlying  districts,  the  location  of  densest  population  having 
moved  outward  from  the  center  of  the  Qty  a  distance  somewhat  over  one 
mile  in  the  past  three  or  four  years. 

An  analysis  of  the  building  permits  issued  by  the  City  during  1914-1915- 
1916  showed  the  greatest  activity  in  this  direction,  building  l^eing  concen- 
trated particularly  in  the  newly  developed  additions  to  tlie  City  and  tlie  out- 
lying portions  of  the  old  City  area. 

Types  or  Rapid  Transit  Structures 

From  the  discussion  of  the  types  of  rapid  transit  construction  the  follow- 
ing is  quoted: 

In  order  to  lay  out  a  financially  possible  system,  which  may  be 


4 


RBPOirr  m  A  SAPID  TSANUT  SYSTEM  FOR  DSTBOIT 


fCslizect  within  a  reasonable  length  of  time  in  such  a  situation  as  that 
pftsented  by  Detroit,  the  necessity  for  low  constructicm  cost  is 
oiwloiis. 

In  the  heart  of  the  City,  where  the  congestioti  of  vdnde  and 
street  car  traffic  and  even  pedestrian  crossing  traffic  has  become  very 
serious,  no  (^her  solution  than  by  a  subway  system  is  possible. 
When,  however,  this  extremely  congested  central  district  is  relieved, 
IHrther  extension  of  subways  seems  of  douhtftd  advisability  as  a 
foitral  mettiod  of  reachii^  the  many  outside  residential  districts  of 
a  radial  city  and  for  soch  extensions  overhead  railways  are  rcoom- 
mcndeda 

Oil  p«C  43^  the  subway  transfer  station  at  Grand  Circus  is  iUnstrated, 
showing  the  north  and  south  Woodward  avenue  and  the  east  and  west  Mich- 
ifan-Gratiot  avenues  subways  on  different  levels. 

An  overhead  structure  is  illustrated  on  page  44,  with  a  single  column 
lllaced  in  the  center  of  the  street  for  streets  of  over  one  hundred  feet  in  width, 
thus  combining  the  minimum  of  obstruction  to  light  and  access  to  adjoining 
properties.  The  cost  of  this  structure  is  only  about  one-third  that  of  a  subway 
line.  -\n  overhead  structure  is  also  shown  on  page  45  on  private  right-of-way, 
the  structure  being  so  designed  as  to  span  the  right-of-way,  thus  providing  an 
additional  vehicle  highway,  which  could  be  utilized  by  trades  and  comniHTial 
vehicles  to  great  advantage.  It  is  not  possible  to  develop  an  adequate  rapid 
transit  system,  self-sa|iporting,  on  a  moderate  fare  without  this  use  of  cheaper 
type  of  railways.  This  has  been  the  history  and  is  now  the  approved  practice 
hi  other  cities. 

Woodward  Avenue  anh  Other  Rapid  Transit  Lines 

The  unique  situation  of  Woodward  avenue  as  the  main  business  thorough- 
tare  of  the  City  and  its  most  densely  traflidced  surface  car  line  is  develo|Kd. 

Taking  into  consideration  the  characteristics  of  the  traffic 
growth  previously  discussed,  the  mcreases  in  and  location  of  resi- 
dential districts,  as  just  mentioned,  and  the  trend  of  factory  loca- 
tion, it  is  seen  Woodward  avenue  is  the  heaviest  trafficked,  the 
most  centrally  located  and  the  most  rapidly  growing  thoroughfare 
in  the  City.  Along  its  entire  length  it  is  becoming  more  and  more 
a  delivery  district  for  passengers  on  the  street  itsdf,  and  the  territory 
on  either  side  is  steadUy  increasii^  in  population  density.  In  all  of 
these  dnuicteristics  the  mcreaics,  tahen  as  a  whole,  are  greater  than 
.    on  any  other  line. 

On  these  gnwinds  Woodward  avcnnc  is  recommended  as  the  initial  rapid 
transit  route. 

The  other  pO8S0)le  rapid  transit  lines  necessary  for  the  City,  as  one  dis- 
trict after  another  outgrows  the  capacity  of  the  surface  car  system,  are  pointed 
out.  On  map  No.  3  is  seen  the  result  of  the  successive  building  steps  com- 
bined into  a  general  rapid  transit  system  intended  to  serve  a  population  of 


DIGEST  OF  REPORT 


5 


two  million  people.  The  City  area  indicated  on  this  map  is  156  square  miles, 
practically  double  that  within  the  present  City  limits.  It  is  stated,  that  on 
account  of  the  level  nature  of  the  country  and  the  equal  desirability  of  many 
districts  surrounding  the  present  City,  a  wide  distribution  of  the  residential 
population  must  be  expected.  The  preponderant  of  one  and  two  family 
detached  homes  and  an  average  population  density  for  the  whole  City  of  only 
twenty  people  per  acre  is  predicted. 

Building  Program 

The  construction  program  is  laid  out  covering  the  period  up  to  1950, 

see  map  No.  3.  This  period  is  divided  into  two  sections,  the  first  one  l^eing 
ten  years  for  which  definite  lines  are  recommended  while  general  recom- 
mendations are  made  for  the  second  and  subsequent  period.  It  is  pointed  out 
as  unwise  to  predict  in  detail  the  growth  of  the  City  beyond  a  very  moderate 
term  of  years.  The  necessity  for  progressive  building  of  rapid  transit  lines, 
as  the  City  grows,  is  stated  as  follows : 

It  is,  of  course,  obvious  that  the  building  of  all  of  these  lines 
immediately  would  be  financially  ruinous  to  whoever  undertook  to 
supply  the  money  for  financing  such  a  iMX>ject  The  constructicm 
must,  therefore,  be  contemplated  in  successive  steps  and  of  these 
Woodward  avenue  is  the  first,  to  be  followed  by  an  east  and  west 
line  parallel  with  Michigan  avenue  and  Gratiot  avenue,  as  above 
described.  The  third  step,  present  indicaticms  would  suggest,  would 
be  a  line  to  be  located  along  or  near  Jefferson  avenue.  This  line  has 
many  claims  to  preference  in  the  way  of  a  great  prc^rtion  of  long 
distance  riders  from  the  outl)ring  districts,  i.  e.,  east  of  Belle  Isle 
bridge  as  far  as  Grosse  Pointe.  The  westerly  end  of  this  line,  if 
extended  beyond  Woodward  avenue  along  Fort  street,  does  not  at 
present  make  a  good  showing.  Tins  might,  however,  prove  tiw  best 
method  of  reaching  the  district  that  will  undoubtedly  grow  up  along 
the  River  Rouge  in  connection  with  the  Ford  tractor  plant.  This 
same  district  might,  on  the  other  hand,  be  reached  from  the  Michigan 
avenue  line. 

The  above  routes  are  the  most  probable  general  arteries  of  travel 
along  whidi  rapid  transit  in  the  firtnre  will  be  justified.  The  route 
whidi  at  present  can  be  considered  fidly  warranted  is  that  on  Wood- 
ward avenue. 

On  diagram  page  48  is  shown  the  rapid  transit  system,  which, 
under  the  conditions  assumed  in  the  financial  plan,  could  be  devel- 
oped during  the  first  ten  years  after  a  definite  policy  regarding  the 
traction  jHroMem  of  the  City  is  decided  upon. 

The  high  speed  line  on  Woodward  avenue  is  planned  to  be  built 
first  as  far  as  Manchester  avenue,  the  underground  portion  esctend- 

ing  from  Woodbridge  street  to  north  of  Grand  Boulevard.  The 
short  subway  branches  for  the  crosstown  lines  could  be  built  next 
and  might  be  used  by  certain  street  car  lines  for  the  purpose  of  re- 


t         REPORT  ON  A  RAPID  TRANSIT  SYSTBM  FOR  DETROIT 

lieving  the  downtown  congestion.  These  subway  branches  could 
tlien  lie  extcndeii  for  rapid  transit  and  connected  to  overhead  con- 
struction in  tlie  location  and  to  tbe  extent  shown  oo  diagram  page 
48,  or  as  far  as  the  financial  situation,  from  time  to  time,  may  permit. 
In  this  manner  it  is  intended  to  develop,  as  rapidly  as  consistent  with 
a  self-supporting  system  and  good  service,  an  initial  set  of  rapid 
transit  routes  which  will  serve  all  parts  of  the  City  and  which  will 
lie  led  by  transfer  from  a  network  of  surface  lines  leading  through 
and  from  the  less  densely  settled  districts  of  the  City. 

SUBTACI  AND  iMTUtmBAN  LiNES 

The  utiliiation  of  surface  lines  as  feeders  by  transfer  to  the  proposed 
rapid  transit  Imcs  is  fully  developed,  and  the  running  of  the  interurban  cars 
oirer  the  rapid  transit  lines  into  the  heart  of  the  C%  is  shown  as  a  means 
loth  of  rdicirmg  street  congestion  and  improving  the  running  time  of  these 
cats. 


CHAPTER  HI— BASIS  OF  UNIFIED  OPERATION 

Commencing  on  page  51  and  extending  to  page  56  is  a  discussion  in 
which  there  are  pointed  out  the  advantages  to  the  public  of  a  unified  system 
of  surface  and  npd  transit  lines.  The  convenience  of  being  able  for  one 
fate  to  use  both  rapid  transit  and  surface  lines,  by  free  transfer  throughout 
the  City,  is  obvious,  as  well  as  the  time  saved  by  such  use  of  the  system. 

The  Rats  of  Faib  Snoiiia  Be  BIadb  Dmemamt 
UroH  THE  Cost  of  the  Ssbvice 

In  Boston,  on  the  unified  surface,  elevated  and  stibway  system, 
under  rigid  public  service  regulation,  one  dollar  of  revenue  in  1897 
was  received  upon  $2.96  invested,  while  in  19 16  this  investment  had 
increased  to  $6.39  for  one  dollar  of  annual  revenue.  With  a  fixed 
fiire  cent  fare  the  mevitaMe  ultimate  embarrassment  of  the  company 
is  obvious. 

In  the  plan  submitted  in  this  Report  it  is  pr(^x>sed  to  make 
possible,  under  Commission  regulation,  a  change  in  fare  with  change 
in  cost  of  service.  Tlie  limiting  conditions  are  to  be  quality  and 
quantity  of  service,  the  actual  cost  of  operation,  and  a  return  on  the 
investment,  such  as  will  secme  the  necessary  capital  for  ^  under- 
taidiifr. 

System  to  be  Self-Supfokting 

The  conditimi  of  maintaining,  out  of  earnings,  an  adequate 
return  on  the  investment  over  and  above  operating  expenses,  em- 
bodies the  essential  requirements  of  a  self-supporting  transportation 
system,  as  proposed  herein. 

Neither  Detroit  nor  any  other  similar  city  can  hope  to  secure 
the  large  amounts  of  capital  necessary  for  the  initial  construction 


DIGEST  OF  REPORT 


7 


period  of  a  modern  rapid  transit  system  and  to  pay  the  fiKCd  chai^;es 
on  such  expenditures  out  of  a  fare  bdow  five  cents. 

The  plan  here  laid  out  is  estimated  to  be  self-supporting  on  an 
average  fare  of  five  cents,  with  free  transfers  throughout  the  thirty 
year  period  up  to  1950.  This  figure  of  five  cents  is  used,  not  to 
indicate  a  fixed  fare,  but  quite  the  contrary. 

*  *  *  it  is  proposed  that  this  question  of  fare  be  placed 
under  the  control  of  the  Street  Railway  Commission  and  the  fare 
based  upon  the  cost  of  the  service. 


CHAPTER  IV— FINANCIAL  PLAN 

The  financial  plan  is  pointed  out  as  essential  to  the  creation  of  a  rapid 
transit  system  for  the  City.  The  costs  of  modem  rapid  transit  lines  have 
become  so  high  as  to  make  financing  of  these  projects  extremdy  difiicult 
Unless  great  care  is  taken  in  protecting  both  the  capital  invested  and  the 
return  on  the  same,  the  investing  public  caamot  be  induced  to  place  their 
money  in  tracticm  enterprises. 

The  absolute  necessity  of  an  increase  of  fare  over  that  at  present  in  effect 
on  the  street  car  system  in  Detroit,  in  order  to  support  the  ])roposed  rapid 
transit  system,  is  clearly  seen.  The  enormous  increase  in  investment  and 
fixed  charges  necessary  for  this  higher  class  of  transportation  facilities  is  indi- 
cated in  the  case  of  the  Woodward  avenue  rapid  transit  line,  by  the  following 
figures  which  are  given  to  illustrate  the  relative  construction  costs  and  the 
annual  interest  charges  on  the  existing  surface  car  line  as  comi>ared  with 
a  proposed  elevated  or  subway  line. 


Woodwavd  Avenue 

Construction 
Cort 

Annual  Interest 

Charges  at 
6  per  cent 

1  625,000 
6^,000 

$  37,500 
300.000 

It  will  be  seen,  therefore,  that  a  two  track  elevated  system  of 
the  improved  type  discussed  in  this  Report  would  cost  eight  (8) 
times  and  the  subway  twenty- four  (24)  times  as  much  as  the  exist- 
ing surface  car  line.  It  must  be  remembered,  furthermore,  that  the 
fixed  charges  on  this  new  investment  are  an  additional  burden  over 
and  above  that  carried  by  the  existing  system,  for  we  afe  here  discus- 
sing a  unified  transportation  system,  rapid  transit  and  surface,  which 
shall  be  sdf-supporting.  Assuming  that  the  present  city  surface  line 
^stem  represents  an  investment  of  $30,000,000.  it  is  obvious  that  a 
Woodward  avenue  subway  would  increase  the  fixed  charges  50  per 
cent  on  the  combined  system.    The  addition  of  the  first  crosstown 


t  REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 

npid  transit  line,  togctlier  with  the  necessary  extensiofis  ol  surface 
lines  and  rapid  transit  and  surface  line  efpipmcnt,  as  proposed  herciii, 
would  mote  llian  double  the  fixed  charges. 


Comparison  of  Cost  and  Fixed  Charges  on  Transit  System  Without 

AND  With  Rapid  Transit 


Interest  at 
6  per  cent 

A 

Present  D.  U.  R.  dty  surface  Unn  anil  vpa^moA 

$80,000,000 

timooo 

Item  A,  with  Woodward  awmw  wabmy  and 

elevated,  and  equipment  

51,000,000 

3,060,000 

C 

Item  B,  witii  an  eaik  and  wok  mibmmy  and 

devated,  and  eqnipnwnt  

08,00(^000 

4J0BM0O 

D 

Item  C,  with  surface  line  extensions  to  facilitate 

transfers  between  rapid  transit  and  surface  lines 

75,500,000 

4,530,000 

The  City  lines  of  the  existing  D.  U.  R.  system,  under  their  pres- 
ent rate  of  fare  (six,  seven  and  eight  tickets  for  25  cents),  do  not 
produce  a  revalue  sufficient  to  pay  more  than  a  very  moderate  return 
on  the  loregoins^  valuation  of  $30,000,000,  even  with  the  heavily 
loaded  street  car  service  as  at  present  given.  The  possibility  of 
maintaining  the  present  rate  of  fare  is  shown  to  be  due  to  the 
constantly  increasing  number  of  total  passengers  per  car  mile  with 
an  equally  steady  falling  off  in  the  speed  on  practically  every  line  in 
the  cky  as  shown  by  the  operating  statistics  of  this  system  m  page 
64  and  graphiadly  on  dii^rram  page  65. 

The  following  anangements  are  proposed  as  necessary  to  the  successful 
financing  of  the  unified  transportation  system. 

A.  A  partnership  to  be  created  between  the  City  and  a  company  formed 
to  talie  over  the  surface  car  lines  of  the  D.  U.  R.  within  the  City  limits. 

B.  The  City  to  build  and  own  the  rapid  transit  lines  and  the  Company  to 
huild  the  surface  line  extensions  and  supply  the  equipment  for  the  entire  system. 

Toward  such  a  partnersiiip,  the  City  will  contribute  the  funds 
necessary  to  build  the  rapid  transit  lines,  whose  cost  is  kept  within 
the  legal  two  per  cent  ddit  limit,  and  whidi  structures  thus  built  it 
is  to  own.  St^isequent  rapid  transit  construction  is  to  be  financed  by 
the  reinvestment  in  the  new  structures  of  the  City's  share  in  the  sur- 
plus from  operation.  These  accumulated  sums  will  supply  the  bulk 
of  the  new  funds  for  rapid  transit  construction  and  keep  the  bond 
issue  well  within  the  two  per  cent  dcht  limit. 

C.  The  new  Company  to  operate  the  unified  system  under  a  terminable 
license  until  the  system  is  talcen  over  by  the  City  under  the  terms  of  the  part- 
ncfsliip' agrecfoent 

D.  The  Company  to  supply  and  finance  the  surface  lines  and  extensions 

and  all  cquipiiiait. 


DIGEST  OF  REPORT 


9 


The  Company  will  contribute  the  existing  city  street  car  system 
at  a  reasonable  valuation  as  of  the  date  of  consolidation,  and  will 
furnish  the  capital  for  all  the  equipment  of  the  rapid  transit  and 
surface  lines  and  for  all  extensions  of  the  street  car  system.  Tl^e  val- 
uation assumed  for  the  street  railway  system  in  19 17  is  $30,000,000. 

£.  Only  actual  interest  rate  on  City  and  coo^any  funds  alk>wed. 

Upon  the  capital  invested  by  each  partner  they  are  to  receive 
from  the  revenues  the  rate  of  interest,  which  they  respectively 
must  pay  to  secure  their  share  of  the  required  capital.  In  cal- 
culating the  financial  tables  it  was  assumed  that  the  interest  rate 
upon  the  capital  invested  i)y  the  company  will  l)e  not  over  six  per 
cent  All  securities  are  to  be  issued  only  upon  approval  by  the 
Street  Railway  Commis^oners  as  to  amouat,  price  and  rate  of 
uiterest. 

A  sinking  fund  to  retire  the  bonds  of  both  City  and  oon^any 
in  sixty  years  is  also  pro\'ided.  The  equity  in  the  property,  repre- 
sented by  the  bonds  retired  tlurough  the  operati(Mi  of  the  sinking 
fund  is  to  revert  to  the  City. 

F.  The  surplus  earnings  to  be  divided  equally  between  City  and 
Company. 

The  net  income  of  the  system,  after  setting  aside  the  interest 
charges  and  the  sinking  fund,  is  to  be  divided  equally  between  the 
City  and  the  company,  provided  the  company's  return  does  not 
exceed  eight  per  cent  on  its  investment.  The  City's  share  in  the  net 
dtvisihle  surplus  is  to  be  subject  to  the  paymeitt  of  an  agreed  mini- 
mum to  Uie  conpai^. 

G.  The  whole  system  to  be  subject  to  purchase  by  the  City  at  a  given 
price. 

A  purchase  price  is  to  be  set  up  for  the  entire  system  which  shall 
consist  of  the  City's  outetanding  securities,  plus  the  value  of  the  sur- 
fs^ car  lines  at  the  time  of  the  consolidation,  plus  such  actual  addi- 
tions as  are  made  from  time  to  time  by  the  company,  reckoned  at  par 
value  of  the  securities  approved  by  the  commissioners  to  cover  these 
last  two  items,  less  those  retired  through  the  sinking  fund.  Com- 
mon stock  IsstMd  by  the  company  is  to  have  no  par  value  and  is  not 
to  be  included  in  the  purchase  price.  At  the  purchase  prict  thus 
fixed,  less  the  City's  outstanding  traction  bonds,  the  City  may  on 
due  notice  take  over  the  property  at  any  time. 

H.  Ownership  of  property  acquired  by  the  City  from  its  share  in  the 
earnings. 

It  is  shown,  that  by  the  working  of  the  stiddng  fund  provision  and  the 
reinvestments  of  the  Gty*s  share  in  the  net  divisible  surplus,  the  ownership 
of  the  property  will  pass  atitomatically  to  tiw  Qty.  The  proposal  is  made 


10         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


that,  as  the  txxids  of  the  company  are  amortized  and  retired,  fhe  equity  rep- 
resented by  these  bonds  becomes  the  property  of  the  Oty.  In  this  manner  it 
is  shown  that  by  1930  the  City  could  acquire,  free  of  debt,  the  entire  system, 
upon  which  had  been  cacpended  $78,882,000,  by  the  payment  of  $65,561,000. 
By  1940  the  entire  system  would  rq)resent  an  investment  under  the  proposed 
building  program  of  $114,858,000  and  this  system  the  City  could  aq|uire,  free 
of  debt,  for  $71,760,000.  By  the  end  of  the  estimated  period,  1950,  the 
building  program  is  shown  to  reqUBie  the  investment  of  $156,134,000.  The 
system  at  this  date  could  then  be  taken  over  by  the  City,  free  of  debt,  at  a  pur- 
chase price  of  $75,435,000,  towards  which  there  would  then  be  accumulated  a 
traction  fund  in  the  hands  of  the  City  of  $25,642,000.  By  the  use  of  tiiis 
traction  fund,  only  $50,000,000  additional  cash  would  be  required  to  oxnplete 
the  City's  ownership  of  the  $156,134,000  property. 

A  series  of  tables,  pages  76  to  85,  show  in  detail,  the  estimated  expen- 
ditures for  investment  in  the  proposed  unified  traction  system,  the  capitaliza- 
tion of  the  funds  required  by  the  City  and  by  the  company,  the  estimated 
gross  operating  revenue  and  operating  income,  the  interest  and  sinking  fund 
charges,  and  the  distribution  of  the  net  divisible  surplus  between  the  City  and 
tilt  company.  The  net  divisible  surplus  is  shared  equally  by  the  City  and  by 
the  company,  with  the  limitation,  however,  that  the  company's  total  income, 
inteiest  phis  surplus,  shall  not  be  more  than  eight  per  cent  nor  less  than  six 
per  cent  on  its  outstanding  securities. 

Charts  on  pages  86,  87,  88  give  in  graphic  form  the  same  informatton 
as  is  aliown  in  the  finaiidal  tallies. 

On  chart,  page  87,  the  division  of  the  outstanding  investment  between 
the  City  and  the  company  shows  the  steady  increase  in  ownership  of  the 
system  by  the  City  and  the  decrease  of  the  company  ownership.  This  use 
of  the  sinking  fund  as  a  joint  means  of  protecting  the  bond  issues  and  simui- 
taneously  acquiring  ownership  by  the  City,  is  particularly  to  be  noted. 

Chart,  page  88,  shows  the  sulxlivision  of  the  gross  operating  revenue  into 
operating  expenses,  interest  charges,  sinking  funds,  and  the  final  division  of 
the  net  surplus  between  the  City  and  the  company.  The  steady  growth  of 
the  City's  return  is  here  dearly  exhibited. 

FoUowtng  this  detailed  picscntation  of  the  actual  working  out  of  the 
pivposcd  and  racommciMicd  financial  plan,  an  analysis  is  submitted  of  three 
aitcmative  plins  in  which  the  difikulty,  and  in  some  cases,  the  unpossibility 
of  acpaate  ownership  of  competing  systems  or  immediate  municipal  owncr- 
ilip  of  the  entire  system  is  pomted  out 


DIGEST  OF  REPORT 


11 


CHAPTER  V— CONCLUSIONS  AND  RECOMMENDATIONS 

In  this  chapter  the  conclusions  derived  from  the  analysis  of  the  existing 
and  the  indicated  future  traffic  situation  are  summarized.  These  conclusicms 
definitdy  point  toward  the  necessity  of  immediately  adc^ing  a  rapid  transit 
policy  1^  the  City  of  Detroit  upon  the  prindple  of  creating  a  self-supporting, 
unified  system  of  progressively  constructed  rapid  transit  and  surface  lines. 
With  the  City's  finandal  co-operation,  such  a  system  can  be  built  and  <^>erated 
to  the  satisfaction  of  the  public.  Strict  commission  control  will  secure  the 
best  service  at  the  lowest  cost  The  needed  facilities  for  high  ^»eed  lines  and 
adequate  service  throughout  the  combined  sySbem  camiot  be  financed  without 
an  increase  of  the  fare  above  that  now  charged  for  surface  car  transportation. 

In  the  reocttnmendatiotts,  the  full  text  of  which  is  found  on  pages  92  to  95 
a  partnership  agreanent  between  the  City  of  Detroit  and  a  Company  formed 
to  take  over  the  dty  lines  of  the  DetrcHt  United  Railway  is  pointed  out  as  the 
best  means  of  obtaining  a  permanent  sduti<m  of  the  Qty's  traffic  proUem  by 
a  unified  surface  and  rafHd  tramut  system.  It  is  recommended  tiiat  the  builds 
ii^  of  subways  be  restricted  to  the  congested  central  area  of  the  City.  Over- 
head high  speed  lines  are  ^anmd  for  the  outljring  districts.  The  prdiminary 
work  connected  with  Hie  construction  of  the  rapid  transit  lines  on  Woodward 
avenue  and  on  Midiigan,  Gratiot,  Forest  avenues  is  to  be  oonunenced  at  once. 
The  extcasioa  of  the  powers  of  the  Board  of  Street  Railway  Commissioners 
in  order  to  enable  them  to  control  the  traffic  situation  both  as  to  construction 
and  operation  as  well  as  to  r^^ulation  of  financing  and  fares,  is  shown  to  be  a 
fundamental  necessity  for  the  success  of  the  proposed  plan. 

APPENDICES 

Appendices  giving  details  of  various  traffic  studies,  statistics  of  the  pres- 
ent surface  lines,  population,  employment  statistics  and  cost  estimates,  ate 
bound  in  tliis  volume  following  the  text  of  the  Report. 


» 


THE  REPORT 


REPORT  ON 

A  RAPID  TRANSIT  SYSTEM  FOR  THE  CITY  OF  DETROIT 


INTRODUCTION 

During-  the  year  19 14  we  made  an  investigation  of  the  traffic  conditions 
on  the  street  railway  system  of  the  City  of  Detroit  in  order  to  comply  with 
the  request  of  the  Board  of  Street  Railway  Commissioners  for  an  analysis  of 
the  causes  leading  up  to  the  street  railway  congestion  during  rush  hours  and 
the  overcrowding  of  certain  lines,  and  for  a  definite  recommendation  as  to 
whether  or  not  a  subway  was  justified  under  the  then  existing  conditions  in 
llie  City.  A  complete  chedk  was  made  of  the  traffic  on  all  the  street  car 
lines  of  the  City  and  an  especially  detailed  traffic  check  was  made  on  the  Wood- 
ward aveni]e  line. 

The  result  of  this  investigation  was  embodied  in  the  report  delivered 
early  in  January,  19(5,  containing  reoommendations  for  the  re-routing  of  the 
street  car  liii||||^^  of  immediate  relief,  and  the  statement  was.  made, 
that  the  traffic,  at  the  existing  rate  of  laie  (seven  tidcets  iot  25  cents),  would 
not  support  a  subway  line,  even  on  Woodward  avenue,  the  heaviest  traffic 
street  in  the  City.  The  fact,  however,  was  pointed  out  that  by  an  increase  in 
fare  on  the  entire  system,  the  traffic  to  be  anticipated,  would,  in  a  few  years, 
support  such  a  rapid  transit  line,  if  the  City's  growth  continued  at  a{^roxi- 
mately  the  then  existing  rate. 

In  May,  191 7,  the  Detroit  Street  Railway  Commissioners  advised  us  that 
in  their  opinion  the  City's  growth  had  continued  at  such  a  high  rate,  and  the 
congestion  of  street  car  traffic  had  so  greatly  increased,  that  they  wished  us 
to  supplement  the  previous  reix)rt  by  bringing  down  to  date  the  19 14- 19 15 
investigation  in  its  most  important  features  and  to  work  out  a  definite  rapid 
transit  pfeui,  which  might  be  taken  by  them  as  a  basis  for  the  establishment 
of  a  rapid  transit  policy  for  the  City. 

In  the  present  report,  we  have,  therefore,  directed  our  attention  primarily 
to  tiie  devdopment  of  a  general  plan  based  upon  a  conservative  estimate  of 
the  probable  future  growth  of  the  City  and  its  consequent  traffic,  and  the 
provision  for  meeting  rapid  transit  needs  along  broad  general  lines.  The 
traffic  counts  and  studies  made  during  19 14  and  printed  in  fhe  19 1 5  report 
have  been  brought  up  to  date  where  applicable  to  the  present  problems. 

The  intention  is  to  place  before  the  Commissioners,  the  general  basic 
facts  bearing  upon  the  question  of  whether  or  not  a  rapid  transit  system  is 
justified  and,  if  so,  on  what  general  lines  it  should  be  laid  out. 

IS 


It        MMfOm  ON  A  KAPID  TBANUT  SYSTBlf  POS  DETROIT 


The  outline  of  the  financial  limitations,  within  which  such  a  system  must 
be  restricted  if  it  is  to  be  self-supporting,  and  the  alternative  of  the  City 
assuming  a  financial  burden  to  support  rapid  transit,  is  also  set  forth. 

A  Baiiiite  lifii  TkiiMl  PragiM 

Tlie  pfoUcni  of  Uymg  out  a  definite  raiiMl  tranut  iyslaii  lor  a  cHy  ol 
tlK  siae  of  Detroit,  at  a  period  when  it  is  umkifoiiif  changes  and  ircry 
OMBiial  growth,  demands  the  answer  to  two  important  ffatttiem: 

(a)  How  cxlcn«ve  a  rapid  transit  system  is  neosMiry  and  reasonible 
to  serve  ffoferiy  the  present  and  future  needs  of  the  Gty,  having  due  regard 
to  the  iiequiiements  of  the  City's  various  districts,  and; 

(h)  What  financud  measures  must  he  adopted  to  raise  the  funds  neces- 
sary lot  'ttilfucting  and  to  secure  the  revenue  for  supporting  such  a  system  ? 

The  first  question  involves  a  determination  of  what  it  is  reasonable  to 
cifect  will  be  the  growth  of  Detroit  in  population  and  area  during  the  next 
thirty  years.  The  obvious  impossibility  of  attaining  detailed  accuracy  in  a 
tMrty^ycar  prediction  suggests  the  wisdom  of  dividing  the  physical  plan  into 
two  periods : 

1.  A  preliminary  ten-year  period  for  which  a  definite  building  program 
is  developed,  and; 

2.  A  subsequent  period  for  which  a  plan  is  made  of  great  flexibility,  so 
that  the  City's  growth  may  be  followed  without  abandoning  the  general 
program. 

By  laying  out  the  initial  ten-year  rapid  transit  plan  so  as  to  form  the 
nucleus  for  a  greater  city  development,  it  will  he  possible  to  outBae  adfitioBS 
to  be  built  during  the  second  period,  which,  however,  can  he  varied  from  time 
to  time  as  the  City's  growth  may,  at  later  dates,  prove  necessary. 

The  second  question,  namdy,  that  of  finance,  involves  the  detanaiiiition 
of  a  definite  policy  upon  which  the  securing  of  the  necessary  money  for  con- 
struction purposes  may  be  obtained.  This  vital  and  absolutely  fundamental 
question  is  treated  at  considerahle  kngth  under  the  heading  'Tiaaacial  Plan." 

It  is  rcaliicd  fttUy  ^  in  these  disturbed  times  both  of  these  questions 
and  their  treatment  are  greatly  con^licated  by  the  existing  abnormal  business, 
financial,  and  ccooonnc  conditions  of  the  whole  country.  The  effort,  how- 
ever, has  been  made  to  lay  down  a  general  plan  for  both  building  and  finance, 
whidi  plaa  is  believed  to  he  fundamentally  sound  in  principle  and  may  be 
modified  in  detail  when  actually  put  into  effect  Special  care  has  been  taken 
to  avoid  the  financial  weaknesses  which  have  been  so  clearly  developed  in  the 
put  §tm  years  in  many  o!  the  older  rapid  transit  systems. 


CHAF7BR  I. 


CrENERAL  BASIS  OP  RE^RT. 

The  following  are  the  fundamental  facts  upon  which  this  r^rt  and  the 
recommendations  contained  therein  are  based. 

Population  Growth  of  Detroit 

The  population  of  the  City  of  Detroit  and  suburbs  began  a  very  rapid 
rate  of  increase  about  1880.  The  following  figures,  compiled  from  the  United 
States  census,  together  with  our  own  investigations  and  the  compilations  of 
local  authorities,  all  as  noted,  illustrate  the  rapidity  of  this  growth  up  to  1917. 
They  form  the  basis  for  our  estimate  up  to  1950,  which  estimate  is  discussed  in 
detail  in  the  "Financial  Plan,"  page  58. 

Population  of  Detroit  and  Soliiifba 


1880    140.000  .    (Estimate  by  B.  P.  &  K.) 

1890    234,000  .    (Estimate  by  B.  P.  &  K.) 

1900    318,967  .  .    (United  States  Census) 

igtO   600,982  .  .    (United  States  Census) 

1918  .   614,486  (Estimate  by  City  Directory) 

nU  .   660.000  (Estimate  by  City  Directory) 

1916    820,000  .  .  .  (B.  P.  &  K.  Canvass) 

1917    914,000  (Estimate  by  City  Directory) 

1990  ......  .  ymjm  .  ^itiaHt«lqrB.P.*K.) 

1930    1,333,000  .     (Estimate  by  B.  P.  &  K.) 

1940    1.666.000  .    (Estimate  by  B.  P.  &  K.) 

1950    2,000.000  .    pSituiiateby  B.P.frK.) 


Density  of  Population  and 
Outward  JReaidential  Movamanl 

The  general  population  movement  of  the  City  is  outward  from  the  center 
reckoned  as  the  City  Hall.  On  diagram,  pa:^  18,  is  shown  the  distribu- 
tion of  tiie  rnidential  population  by  mile  zones,  i.  e.,  in  the  zone  determined 
by  a  circle  of  <Mie  mile  radius,  in  the  zone  between  this  and  a  circle  of  two 
mile  radius,  etc.,  the  cmter  of  the  circles  being  the  intersection  of  Michigan 
and  Woodward  avennes. 

On  the  upper  diagram,  the  ordinates  of  die  curvtt  for  different  years 
show  the  number  of  people  in  thoisands  per  square  mile  in  the  different  zones, 
the  area  of  which  is  represented  by  the  curve  nttrlced  "Area  1916."  The 
horiaontal  scale  shows  the  distances  in  miles  of  the  same  aones  from  City  Hall. 

17 


I 


MTiML  immWi/r/ON  or  POPi/lAT/ON 


GENERAL  BASIS  OF  REPORT 


19 


Thus  on  the  upper  diagram  the  interaectkm  of  the  curve  1916  with  the  vfflkal 
line  I — 2  shows  that  in  this  year,  on  an  average,  32,500  people  per  sqtare  mile 
were  residii^  in  the  district  or  belt  included  between  the  one  and  two  mite 
circles  with  the  City  Ifall  as  a  center.  This  was  the  aonc  of  greatest  density 
in  1916.  In  1913  and  preceding  years  the  greatest  density  was,  as  the  curves 
show,  within  the  one  mile  circle. 

The  lower  cinrve  on  this  <liagram  shows  that  in  1916  the  maxinuim  num- 
ber of  people  were  resident  in  the  /.one  or  belt  betwwn  two  and  three  miles 
fnxn  the  City  Hall.  It  will  be  noted  that  in  19 10  the  number  of  residents  in 
the  I — 2  mile  zone  was  about  equal  to  the  numl>er  in  the  2 — 3  mile  7,f>ne  and 
previous  to  that  date  the  inner  i — 2  mile  zone  was  the  greatest  in  total  popu- 
lation. 

From  both  the  diagrams  it  is  readily  seen  that  the  heaviest  growth  in 
1916  was  in  the  2 — 3  mile  zcine  and  the  density  of  p« )])ulriti( m.  which  prior  to 
1916  was  greatest  within  a  distance  of  one  mile  of  the  City  Hall,  is  now  at 
least  a  mile  further  out.  This  fact  accounts  to  a  great  extent  for  the  unprece- 
dented growth  of  the  street  car  traffic  which  occurred  between  the  years  19 13 
and  1916. 

Area  of  Detroit 

On  page  20  is  shown  a  map  of  the  area  of  Eletmit  at  different  pericKh. 
The  growth  of  the  City  area  does  not  necessarily  bear  any  relation  to  the 
growth  of  population,  as  the  additions  are  usually  made  in  convenient  subdi- 
visions for  various  reasons;  but  in  general  the  Gty  is  seen  to  have  spread 
out\vard  quite  uniformly,  north,  east,  and  west,  the  greatest  extension  having 
been  toward  the  north.  Woodward  avenue  throughout  has  remained  very 
centrally  located  as  the  north  and  south  axis  of  the  City.  The  area  of  the  City 
in  1900  was  28.34  square  miles,  in  1910  it  was  40.79  square  miles  and  in  191 7 
it  grew  to  80.67  square  miles.  Our  estimate  (^f  the  area  necessary  lor  the 
comfortable  housing  of  a  population  of  two  million  jieople  is  1 55  square  miles. 

City's  Size  Justifies  Rapid  Transit 

The  necessity  for  ra])i(l  transit  in  a  city  does  not  necessarily  commence 
coincident  with  any  particular  population.  The  density  of  population,  resi- 
dential location,  and  distance  from  points  of  occupation,  as  well  as  physical 
features  of  the  City  area  may  be  controlling  factors.  It  is  interesting  to  note 
that  Boston  commenced  its  rapid  transit  program  when  its  population  rcachetl 
approximately  830,000.  The  initial  elevated  railroad  construction,  the  only 
form  of  rapid  transit  in  Chicago,  was  commenced  when  the  city  was  sliglitly 
over  the  1,000,000  mark  and  Philadelphia's  first  rapid  transit  line  was  startecf 
when  the  city  had  approximately  1400,000  population. 

If  dependence  can  be  placed  upon  the  indications  of  the  past  twenty  years, 


5 


SSOMI 


acoS 


SXHOI3H^6 
UIV13  XS 


lf|l|||l|iUJ/ 


9 


lit 


if 

ii/ 
o 


(is? 


GENERAL  BASIS  OF  REPORT 


21 


Detroit's  future  growth  to  a  city  uf  1,500,000  or  2,000,000  people  is  perfectly 
reasonable  to  anticipate. 

Detroit  in  the  matter  of  size  has  therefore  reached  the  stage  where  other 
cities  entered  upon  their  rapid  transit  devdc^iment. 

The  transit  facilities  of  a  city  are  so  intimately  connected  with  its  com- 
mercial success  and  steady  development  that  it  is  hardly  to  be  conceived  that 
an  active  manufacturing  city,  lilee  Detroit,  could  grow  to  anything  like  the 
1,500,000  or  2,000,000  mark  without  net^sarily  and  simultaneously  develqi- 
ing  a  rapid  transit  system. 

Built  on  a  practically  level  plain,  with  no  real  physical  obstrnctions  to  city 
extension,  the  inevitable  character  of  Detroit's  growth  must  be  towards  resi- 
dence districts  of  relatively  low  population  density,  detached  bouses  of  the 
one  and  two-family  type  predominatino-.  A  population,  therefore,  of  over 
1. 000. 000  people  distributed  at  about  20  per  acre  involves  a  city  area  of  about 
100  sf|uare  miles  and  the  necessity  of  reg^ularly  hauling  many  passengers  eight 
to  ten  miles.  With  ordinary  electric  street  car  service,  this  means  a  ride  of 
about  one  hour.  This  is  the  generally  recognized  limit  within  which  daily 
trips  must  be  kept  to  be  satisfactory  to  those  making  habitual  use  of  such  a 
line.  Detroit,  if  it  has  not  already,  will  within  the  next  few  years  reach  just 
such  conditions. 

!>  rattle  utowtn 

The  traffic  growth  for  the  City  lines  is  not  obtainable  in  the  early  periods. 
Hie  foHowing  table  shows  the  actual  and  estimated  passenger  trafiic  smce 
1904,  and  diagram,  page  22,  indicates  its  rapid  growth  in  prc^rticm  to  the 
population  increase. 


Actual  and  Estimated  Paaaeiiger  Traffic 


Passengers 

Revenue  Rides 
per  Capita 

Increase 
Rides  per 
Capita  per 

ABRimi 

Year 

Total 

Revenue 

1!KU 
11»10 

280.190,216 

78349,220 
141,090y525 

248 
282 

am 

5.68 
19J0O 

1914 

me 

W17 

3 1 0,0]  0,1 04 
417,780,244 
440,544,836 

21!»,(KK>,(V)6 
292,043,741 
315.48M78 

•m 

361 

6.00* 
ll.d0 

6.00 

im 
im 

1940 

518^000^ 

70«,000,0(K) 
«.M>4,0(,'^M1<«> 

370,000,000 
907^)00,000 
650,000,000 

370 
3t«) 

3.00 
1.00 
1.00 

urn 

1,11(MKN>,CIU«» 

KOC»,(IOO,<NN) 

1.00 

 -  _   

3 
jE 
s 


n 


m      mxmwT  am  a  kapib  tiansit  STfTBH  von  dbtroit 

The  rap^  incrcftse  both  in  total  traffic,  revenue  rides,  and  rides  per  capita 
It  iMous  so  far  as  existing  statistics  are  concerned,  namely,  to  19 1 7.  Beyond 
lliat  point  the  prediction  is  based  upon  estimates  as  to  the  increase  in  riding 
iialiit  experienced  in  other  cities. 

The  ttnnsitally  high  revenue  rides  per  capita  of  this  City  and  the  quite 
cxtraofiiiiafy  incwMei  of  the  past  ten  years  warrant  the  prediction  of  sonie 
furtlier  gnywtfa.  A  maxinram  of  400  rides  per  capita  per  annum  has  been 
set  as  the  limit  for  the  riding  habit,  upon  the  theory  that  even  in  a  manufactur- 
ing dty  of  great  industrial  activity,  400  rides  per  annum  per  individual  is  as 
high  an  average  as  is  reasonable  to  expect.  The  further  increase  from  361 
rides  per  capita  in  191 7  is  taken  at  3  per  annum  for  the  next  three  years  an'l 
one  per  annum  from  1920  to  1950.  This  latter  uniform  rate  of  increase  is 
arbitrarily  assumed,  and  it  is  conservative  in  view  of  the  average  of  8.7  annual 
increase  for  the  past  1 2  years  and  does  not  involve  the  detailed  prediction  of 
the  fluctuations  from  year  to  year  in  this  rate,  in  which  accuracy  would  obvi- 
ously be  impossible. 

Cingwtioii  on  SurfMe  Utm 

Rapid  transit  in  Boston  was  forced  more  by  the  intolerably  congested 
CfMMlition  of  stfccts  in  the  princ^l  delivery  district,  than  by  reason  of  the 
length  of  famL  In  Chicago,  on  the  contf^,  the  length  of  haul  was  more 
portiailarly  the  controUii^  factor.  In  Detroit  both  these  conditions  are  becom- 
ing acute.  The  surface  car  congestion  in  the  center  of  the  City  during  the 
rush  hours,  even  as  relieved  by  the  re-routing  arrangement  recommended  in 
our  1915  report,  still  presents  serious  difficulties.  The  traffic  congestion  on 
the  main  thoroughfares  converging  at  practically  one  point  must  soon  force 
some  other  form  of  transportation,  at  least  in  this  central  part  of  the  City. 

The  extremely  tiyii^r  conditions  of  congestion  during  the  rush  hours, 
espedally  durii^  the  evening  rush,  are  illustrated  in  diagram,  page  23..  in 
which  the  number  of  passengers  carried  by  the  street  cars  is  shown  by  half 
hourly  intervals.  During  2V2  hours  each  day  twice  the  average  number  of 
passengers  for  24  hours  are  carried.  For  one  hour  three  times  and  for  one- 
half  hour  four  times  the  average  numl)er  of  passengers  are  carried.  Thus 
95.000  people  must  be  accommodated  during  the  maximum  one-half  hour  or  at 
a  rate  of  190,000  per  hour  against  an  average  of  48,000  per  hour  for  the  whole 
day.  A  large  proportion  of  these  riders  originate  at  or  cfOM  the  business  dis- 
trict and  their  number  grows  each  year.  The  in^oasibitity  of  providing 
adequate  facilities  for  handling  this  tftflk  on  the  surface  of  the  streete  is 

m 

becoming  quite  apparent. 

The  length  of  haul  is  also  increasing  with  extensions  of  the  city  area, 
until  a  considerable  part  of  the  triffic  on  some  lines  is  carried  six  to  ten  mites. 


OENSRAL  BASIS  OF  REPORT 


2S 


It  must  l)e  remembered  that  passengers  originating  on  one  line  in  the  outskirts 
of  the  City  are  frequently  employed  in  factories  on  the  other  side  of  town  and 
use  two  lines  riding  twelve  to  eighteen  miles  each  way  daily. 

Besides  the  mere  question  of  crossing  interferences,  the  traffic  on  some  of 
the  lines  in  Detroit,  notably  Woodward  avenue,  has  reached  a  density  which 
is  practically  the  limit  of  the  carrying  cai)acity  of  two  surface  car  tracks  on 
a  single  street.   The  heaviest  of  these  lines  deserve  special  analysis. 

The  recxmunendations  for  improving  surface  car  conditions  made  in  our 
191 5  report  have  in  large  measure  been  adc^ted  and  with  beneficial  results.  As 
then  pointed  out,  however : 

"Provision  must  be  made  for  handling  in  the  future  during  rush 

hours  not  only  a  much  greater  volume  of  traffic  than  at  present, 
but  one  of  greater  density  than  now  occurs  at  the  congested  center. 

"The  growth  of  the  business  district,  togetlier  witli  the  increased 
density  of  pedestrian,  vehicle  and  street  car  moN  cments  w  ill  in  time 
make  demands  beyond  the  possible  limits  of  surface  street  car  trans- 
pMta^ion. 

''Assuming  that  the  growth  of  Detroit  will  continue  to  and 
beyond  tiie  1,000,000  population  mark  and  that  its  future  importance 

as  a  great  manufacturing  center  will  be  maintained,  additional  steps 
in  the  development  of  its  transportation  system  should  be  prepared 
for,  following  and  supplementing  the  re-routing  and  related  recom- 
mendations just  made." 

The  fact  is  that  exactly  the  ci)nditi(  ns  predicted  in  191 5  now  exist,  the 
time,  however,  has  l>een  shorter  than  was  then  anticipated.  The  intro<luction 
of  two  car  units  and  skip  stops  has  made  possible  the  carrying  of  greater  traffic 
on  the  heavier  surface  lines,  but  with  tiie  accompanying  increase  in  pedestrian 
and  vehicular  interference,  the  limit  of  capacity  with  any  reasonable  speed  of 
cars  has  been  reached. 

Traffic  Growth  1914  to  1917 

The  estimates  made  in  1915  as  to  future  growth  of  traffic  and  based  on 
the  traffic  figures  up  to  19 14  warranted  the  recommendation  then  made,  that 
definite  preparations  should  be  undertaken  for  the  building  of  an  initial  sub- 
way on  Woodward  avenue,  should  the  growth  of  the  City  continue  at  recent 
rates.  Doubt  was  expressed  as  to  whether  a  surface  car  line  could  for  many 
more  years  be  able  to  handle  satisfactorily  the  Woodward  avenue  traffic. 

.Since  19 14  the  traffic  has  increased  even  in  excess  of  the  most  liberal 
estimates  we  then  felt  warranted  in  making.  The  traffic  investigation  con- 
ducted during  the  summer  and  fall  of  19 17  discloses  the  following  greatly 
altered  conditions  on  the  heaviest  lines  of  the  City : 


GENERAL  BASIS  OF  REPORT  27 


Total  Paaieiigm  Per  Aimum  Carried  on  the  Four  Heaviest 

Lines  in  Detroit 


Line 

III14 

1917 

Increase,  per  cent 

Woodward   

Michigan  

Jefferson   

Port   

47,467,2»4 
46,484,<i(>l 

37,U3<i,773 
25,31<>,2!to 

72,000,(KK> 
61,000,000 
51,(KN,),(K)0 
33,(KXt,(Ni0 

52.0 

3L0  ♦ 

37.0 

3L4 

It  will  be  seen  that  Woodward  avenue  has  not  <Mily  continued  to  maintain 
its  position  as  th^  heaviest  traffic  line  tmt  has  also  made  the  largest  rate  of 
increase.  However,  the  forcing  figures  greatly  underestimate  the  impor- 
tance of  the  Woodward  avenoe  line  for  rapid  transit  doe  to  ^  fact  that  the 
foregoing  total  figures  do  not  show  tiie  density  of  travel. 

The  diagrams,  page  26,  show  these  conditions  clearly.  The  left-hand 
diagram,  indicating  the  total  passengers  per  annum  for  the  four  heaviest  sur- 
face lines,  shows  tiie  growdi  of  the  total  traffic  for  each  of  these  lines  to  be  at 
the  sune  general  rate.  The  right-hand  diagram  giving  the  passengers  per 
n^e  of  smgle  track  shows  the  greater  density  add  the  greater  rate  of  increase 
of  the  Woodward  avenue  line  over  all  others  in  the  City.  Stated  in  figures, 
this  is  as  follows: 


Total  PaMeogm  Per  Miie  ^ns^  Track 
Detroit^-Oiicago— New  Yock 


Line 

1914 

1917 

Percent 
Increase 

3,080,000 
1,737,900 

l,7l6,r)(X) 

1,U74,(K.)0 

4,640,<^X> 

2,28<M'<'<^ 
2,2iH»,(KI() 
1,4<HI,(XK) 

3,230,000* 
1,115,000* 

52.0 
31.1 
33.4 
30.3 

i>.2 

Halstead  street,  Chicago  

Rfevated  Rniwajrt,  (3ucago  

Elevated  Railways,  Manhattan  and  Bronx,  M.  Y.  . 

Elevated  Railways,  Brooklyn  

Huclson*and  Manhattan  Tubes  N.  Y  

SiAway,  New  Yoric  

•  ioi« 

3,O40,«1O 
3,447,21K) 

3,230,(KIO 
l,2!»r,,000 
3,673.000 

6.2 

6.6 
lU 

The  Woodward  avenue  line  therefore  carried  in  191 7  a  denser  traffic  per 
mile  of  trade  than  the  heaviest  rapid  transit  lines  in  this  country  with  the 
single  exceptkm  of  the  New  York  subway  in  19 16.  With  the  added  trackage 
of  the  year  1917,  the  New  York  subway  figure  is  considerably  lower  than 
Woodward  avenne  in  1917. 


2S         REPORT  C»ll  A  RAPID  TRANMT  SYSTBli  FOR  DETROIT 


Woodward  avenue  is  also  seen  to  have  in  1917  more  than  twice  the 
density  of  traffic  of  the  Michigan  avenue  and  also  twice  that  of  the  Jefferson 

avenue  line.  The  density  of  traffic  on  Woodward  avenue  is  also  44  per  cent 
heavier  than  Halstcad  street,  the  heaviest  street  car  line  in  the  city  of  Chicago, 
in  fact  as  far  as  we  are  able  to  ascertain,  there  is  no  single  line  of  surface 
cars  at  present  operating  over  a  distance  of  seven  or  eight  miles  that  carries 
is  heavy  a  traffic  as  this  Detroit  line.  There  are  heavier  lines  for  a  few  blocks 
in  a  number  of  cities,  which,  due  to  the  convergence  and  uniting  of  several 
lines  upon  a  single  thoroughfare,  carry  the  combined  traffic  of  widely  divergent 
routes,  but  Wootlward  avenue,  on  the  contrary,  is  a  line  witliout  converging 
branches.  The  entire  traffic  is  hauled  over  two  tracks,  the  passengers  either 
originating  along  the  line  or  reaching  it  by  transfer  from  intersecting  lines. 

Tramler  Traffic 

On  account  of  the  extensive  transfer  privileges  available  to  passengers  6n 
the  existing  street  railway  system  a  knowledge  of  how  these  passengers  now 
find  it  convenient  to  utilize  these  transfer  facilities  is  important,  as  a  transfer 
is  contemplated  between  the  surface  and  proposed  rapid  transit  lines.  It  has 
been  found  in  actual  practice  that  where  time  can  be  saved  a  passenger  will 
transfer  from  the  surface  to  the  rapid  transit  line  and  vice  versa  if  the  transfer 
arrangements  are  convenient 

A  transfer  count  was  made  on  all  the  lines  of  the  D.  U.  R.  surface  car  sys- 
tem in  the  City  of  Detroit  covering  the  twenty-four  hour  period  of  June  27, 
1917.  This  showed  that  transfers  were  issued  and  used  in  a  number  equal 
to  39wi  per  cent  of  the  revenue  passengers.  There  were  864,303  revenue 
passengers  who  presented  tickets  or  cash  for  their  initial  ride.  Of  these, 
275,957  transferred  to  another  line  and  62,077  of  these  latter  made  a  second 
transfer.  This  means  that  338,034  transfer  rides  were  made  during  the  day 
by  the  8644<H  revenue  passengers. 

Record  of  Passengers,  June  27,  1917 
Revenue,  Free  and  Transfer 


IlWOTue  passengers,  «ti<iets  for  2^          ....  -^Jg 

Revenue  passengers,  7  tickets  for  25  c«ite.  ....  'g.Jg 

Revenue  passengers,  8  tickets  for  25  cent*  

Revenue  passengers,  Interurban  tickets  ...... 

Revenue  passengers,  5  cent  tickets  ■  ■    m  Sos 

Revenue  passengers,  5  cent  cash  fare  each   SS'??^ 

Free  riders  (employees)  -  '   ota 

Transfers,  stn^   «o'^^ 

Transfers,  dottUe  


Total   1,238,067 


Of  the  total  of  338,034  transfers  made  on  the  city  system  on  the  day  of 
the  check,  119*632,  or  354  per  cent  occiined  in  the  central  district  between 


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IBPOKT  OH  A  RAPID  TIANSIT  tfSf HI  fCXS  DBTSOIT 


State  street  and  the  river  and  of  these  57,817,  or  48.3  per  cent,  were  to  or 
from  tiie  Woodward  avenue  line. 

The  largest  number  of  transfer  passengers  were  carried  on  the  Wood- 
ward, Crosstown,  Michigan  and  Jefferson  lines.  The  Grand  Belt  and  the 
Fourteenth  lines,  however,  did  a  very  heavy  transfer  business.  Woodward 
avenue  with  the  largest  number  of  total  passengers  for  any  line  in  the  City 
also  had  the  largest  number  of  transfer  passengers.  Of  the  total  traffic  handled 
on  this  line  46.6  per  cent  transferred  either  to  or  from  the  line  on  the  day  of 
this  check  which  is  the  same  percentage  as  the  average  percentage  for  this  line 
for  the  year  1916.  The  Crosstown  line,  carrying  the  second  largest  number 
of  transfer  passengers,  showed  that  85  per  cent  of  its  total  passengers  trans- 
ferred to  or  from  this  line.  In  other  words,  out  of  a  total  of  98,269  total 
croistiywn  passengers  carric4>  84,9^  used  transfers.  The  Michigan  avenue 
ine  carrying  the  third  laigest  transfer  tiustness  g^ve  to  or  received  transfers 
from  51  per  'Oent  of  its  total  passengers. 

Thft  diagrams,  page  29,  show  gn^ically  the  rdative  number  of  transfer 
passengers  carried  on  each  line  tn  the  Oty  and  the  number  of  tnuisler  pas- 
sengers per  mile  of  wngle  trade.  Cimsideration  of  the  lines  susceptible  of 
devefopment  into  rapid  transit  routes  is  all  that  is  here  necessary.  The  follow- 
iflf  shows  the  transfer  chaiacteristics  of  these  lines: 


IVansf er  Passengers,  Twenty-four  Hour  Check,  on  Four  Heaviest  Lines 


Line 

Total  TfMwfien 

Transfers  per  Mile 
of  Single  Track 

NJWmMi  ............ 

'■Pin*  ,,..,..»...••» 

UfiU 

6700 
3U0 

siao 
mo 

In  transfer  passengers  Woodward  avenue  is  again  seen  to  have  the  great- 
est number  of  any  line  in  the  City  and  also  the  greatest  nnndier  per  mik  of 
sinfie  track.  This  line  also  receives  transfer  passengers  in  oonsiderahte  mnii- 
bers  from  more  lines  than  any  other  sii^  tine  in  the  City.  This  shows 
that  the  Woodward  avenue  line  serves  the  whole  City  area  more  nearly  than 
any  other.  Of  the  189,736  daily  passengers  riding  on  Woodward  avenue  cart 
46.6  per  cent  transfer  either  to  or  from  other  lines  and  of  these  18  per  cent., 
or  15,547  passengers,  make  a  second  transfer  to  reach  remote  parts  of  the 
City.  Following  the  individual  groups  it  was  found  that  practically  all  resi- 
dency ii|tric^  of  the  City  contribute  their  quota  to  this  line.  A  rapid  transit 
line  on  this  main  thoroughfare  will  be  giving  half  of  its  service  to  passengers 
not  resident  on  this  line. 

The  distribution  of  the  transfer  traffic  along  Woodward  avenue  is  also 


OBNBSAL  BASIS  OF  RBPORT 


31 


important  Of  the  total  of  88,495  transfer  passei^iers  to  or  from  Woodward 
avenue  57,817,  or  65.3  per  cent,  are  handled  between  State  street  and  Jeffer- 
son avenue  or  what  may  be  termed  the  central  district  of  the  City.  The  next 
largest  transfer  is  at  the  Crosstown  line,  where  16,538,  or  18.7  per  cent,  were 
handled,  while  the  Grand  Belt  line  handles  11,133  or  12.6  per  cent,  and  the 
Victor  Junction  line  3,007,  or  3.4  per  cent.  The  predominating  importance 
of  the  transfer  at  the  center  of  the  City  is  therefore  obvious.  On  the  other 
hand  it  is  found  that  the  three  transfer  lines,  the  Crosstown,  Grand  Belt  and 
Victor  handled  20,859  passengers,  or  67.8  per  cent,  of  their  total  Woodward 
transfers  to  or  from  points  north  on  Woodward  avenue.  The  full  details  of 
this  transfer  count  are  included  in  Appendix  I  and  are  shown  graphically  in 
diagrams,  pages,  100,  loi  and  102. 

Bsthnated  Rapid  Transit  Traffic 

Considering  the  growth  of  the  past  ten  years  it  is  reasonable  to  estimate 
a  passenger  traffic  on  the  Woodward  avenue  line  by  the  year  1922  of 
85,000,000  total  passengers.  This  estimate  is  based  upon  the  assumption  of 
free  transfers  between  this  line  and  the  intersecting  car  lines  and  the  building 
of  a  rapid  transit  line  along  this  street  to  be  in  oi>eration  at  about  this  date. 
Based  upon  estimates  of  time  saving  through  the  use  of  the  rapid  transit  line 
by  the  long  haul  riders,  it  is  quite  probable  that  50,000,000  of  the  total  pas- 
sengers would  use  the  rapid  transit  trains  if  the  same  fare  and  free  transfer 
were  offered.  Such  a  division  of  the  total  traffic  will  at  once  relieve  the  over- 
crowded condition  of  the  surface  lines  and  make  possible  in^yrovement  in  both 
running  time  and  service. 

An  analysis  of  the  1916  traffic  of  five  of  die  heaviest  lines  in  the  City  of 
Detroit  has  been  made  to  find  the  proportion  of  their  traffic  tributary  to  a 
rapid  transit  line  similarly  located.  The  figures  shown  in  the  foUowing  table 
are  somewhat  tow  due  to  the  omission  of  any  allowance  for  the  diversion  of 
traffic  from  parallel  lines^  whidi  traffic  would  be  attracted  by  the  higher  speed 
of  the  adjacoit  rapid  transit  line.  This  item  has  been  omitted  due  to  the  great 
difficulty  of  predicting  its  vohmw  and  it  is  noted  here  as  an  added  safety  factor. 

By  assuming,  in  estimates  of  future  traffic,  that  the  rapid  transit  passen- 
gers will  bear  the  same  proportion  to  the  total  passengers  as  is  shown  in  the 
foregoing  division  of  existing  traffic  on  the  surface  lines,  a  very  conservative 
position  is  taken.  The  fact  is  that  during  the  period  of  construction  of  the 
rapid  transit  lines,  a  considerable  increase  in  long  haul  riders  will  be  experi- 
enced in  anticipation  of  the  higher  speed  service. 


iBPOvr  ON  A  mmB  rmmm  tmsii  warn  wmtum 


mmiiMrtui  BMIoii  nf  fniffic  for  1916  Betiveai  Smfact  and  Rifiid 


Name  of  Line 

Total  PassenMSS 
on  Pieeent  Car 

No.  of  Passengers 

Per 
cent 

Avenge  Haul 

Present 

Lines 

Rapid 

Transit 

Woodward  

Michigan-Gratiot  .  .  . 
Icffersrai^^jnafl  River  . 

Port   

CranConni  > 

68,063,639 
60,261,462 

61,237,266 
32,756,003 

31,720,000 
2}),506,a)0 
26,322,000 
16.504,000 

46.7 
4!>.6 
51.2 
47.6 
^4 

2.81 
3.11 
3.26 
2.81 

3.86 
4.22 
4.50 
3.72 

He  origin  and  destination  of  the  passengers  was  determiiied  on  liasit  of 
iie  If  14  traiic  count.  Tlie  per  cent  of  total  passengers  tributary  to  the  rapid 
transit  tine  was  determined  by  the  method  of  time  saving,  the  speed  of  the 
street  cars  and  rapid  transit  being  taken  at  nine  miles  and  sixteen  miles  per 
hour  respectivdy. 

It  is  seen  fnnn  the  foregoing  tabulation,  that  while  the  total  number  of 
passengers  on  Woodward  avenue  is  in  excess  of  the  other  lines,  the  length 
of  haul  is  not  so  great.  The  principal  deciding  factors  in  favor  of  Wootlward 
avenue  as  the  initial  rapid  transit  line  is  the  density  of  traffic,  the  impossibility 
of  adequate  service  on  the  existing  street  car  system  and  the  continued  increas- 
ing rate  of  growth  on  this  line. 

In  the  financial  plan  it  has  been  necessary  to  assume  some  order  in  which 
the  subsequent  lines  are  to  be  built.  After  the  initial  step  the  program  has 
been  arranged  in  such  a  manner  as  to  allow  the  changing  of  this  order  if  neces- 
sary. The  sequence  in  order  of  construction  is  based  upon  the  general  assump- 
tion, that  the  city  will  continue  tojmK  in  such  a  manner  tfiat  the  present 
proportion  of  the  trafiic  on  tlMlll^^        lines  wiU.  be  maintained. 

Fdlowing  this  line  of  reasoning  and  referring  to  the  table,  the  Michigan- 
Gratiot  lipid  transit  line  was  selected  as  the  second  step  in  the  program.  In 
this  connection  it  is  pointed  out  that  the  tracks  of  the  Michigan-Gratiot  surface 
line  also  carry  a  number  of  other  car  lines.  This  traffic,  which  does  not  appear 
in  tlie  foregoing  taMe,  is  considerable  and  is  hauled  for  a  distance  of  several 
miles  on  Mldngan  and  Gratiot  avenue%  thetdby  increasmg  the  importance  of 
tliin'  route. 

A  glance  at  the  diagram  on  page  48  shows  that  these  two  first  lines. 
Woodward  and  Michigan-Gratiot,  form  rapid  transit  arteries  at  right  angles 
m  one  another,  one  north  and  south  akmg  the  central  axis  of  the  City  ( Wood- 
ward avenue),  ^  other  east  and  west  over  the  next  heaviest  traffic  line  and 
traversing  the  most  heavily  settled  residential  districts. 

A  furilier  discnision  of  this  subject  is  given  in  Chapter  II. 


QBNBRAL  BASIS  OF  REPORT 


33 


PuUk  Demand  for  Service 

It  is  of  course  impossible  to  say  what  number  o{  passengers  a  certain  car 
line  can  carry.  That  is  largely  a  function  of  the  quality  of  service  which  the 
operating  ctunpany  can  provide  at  the  prevailing  fare,  and  of  how  much  incon- 
venienoe  the  passengers  will  stand  in  crowding  and  low  speed.  It  also  depends 
i^on  the  physical  limitations  of  the  traffic,  such  as  vdiide  and  pedestrian 
interference,  frequency  of  stc^,  etc 

For  »milar  reascms,  the  carrying  capacity  of  rapid  transit  lines  cannot 
be  aocuratdy  determined.  In  New  Yoric  the  Interix>ro  Subway  was  designed 
for  uid  expected  to  carry  400,000  passengers  per  day,  but  by  19 12  it  was 
canying  830^000  daily,  and  the  condition  of  crowding  during  rush  hours  was 
then  considered  intolerabie.  Tins  oonditkm  existed  notwithstanding  the 
lengtiiening  of  trains  and  platforms  and  the  reduction  of  the  headway,  until 
it  was  unpracticable  to  give  more  aecoomiodatkm.  la  1917  the  average  daily 
traffic  amounted  to  1,130,000  passengers  with  a  corresponding  increase  in 
congestion,  direcdy  due  to  the  loi^  delay  In  pioviding  for  additional  rapid 
transit  lines. 

The  history  of  rapid  transit  construction  in  large  cities  in  recent  years 
has  been  a  succession  of  postponemoits  and  delays  in  deciding  upon  a  plan 
and  actually  starting  construction  work.  The  public  have  usually  failed 
to  realize  the  long  period  required  to  plan  and  build  modern  subway  lines  and 
as  a  result  years  of  discomfort  and  inadequate  service  have  been  «iduied, 
which  might  have  been  avoided,  had  a  more  far  sighted  course  been  pursued. 

In  order  to  use  to  advantage  the  experience  gained  in  other  cities  an 
immediate  decision  of  entering  upon  the  rapid  transit  policy  in  Detroit  should 
be  made.  The  initial  plan  should  be  based  on  the  needs  of  a  population  of 
from  1,300,000  to  1,500,000  to  which  the  city  is  expected  to  grow  within  the 
next  15  years.  Conversely  upon  the  decision  to  build  or  not  to  build,  this 
increase  will  partly  depend.  It  is  a  well  recognized  fact  that  transit  facilities, 
even  in  the  building  period,  stimulate  growth  in  anticipation  of  the  service  to 
be  later  supplied. 

It  must  be  kept  in  mind,  that  were  the  plans  herein  proposed  approved 
by  the  Commissioners  and  submitted  to  referendum  vote  in  April,  1918,  and 
then  favorably  acted  upon,  the  preparation  of  plans,  letting  of  contracts  and 
actual  construction  of  a  subway  on  \\'^oodward  avenue  would  not  give  actual 
service  before  the  auttmin  of  192 1  or  early  in  1922,  and  other  lines  at  an  even 
later  date. 

It  is  not  intended  here  to  urge  the  commencement  of  actual  construction 
of  subwajrs  in  Detroit  at  such  a  time  as  the  present,  when  all  financial  an(' 
construction  resources  arc  under  the  strain  of  a  great  war.  It  is  intended, 
however,  to  point  out  that  a  considerable  number  of  years  must  necessarily 


M        SBFOST  ON  A  SAPID  TKANSIT  SY8TB1I  FOR  DETROIT 


dapie  iMtwecn  a  dedskn  to  Imild  and  €lie  commcncciiicnt  of  succe^fiil  oper- 
ation,  and  tliat  of  tMs  period  much  of  the  time  must  be  eni{doyed  in  the  wofk- 
ini:  out  of  the  details  of  afreements,  ^edfications  and  fltam,  whidi  would  not 
iravdve  csi^ienditurcs  of  laiige  amounts  of  money  and  which,  when  ccxnpleted, 
would  make  immediate  construction  possiUe  upon  ^  resumption  of  noraia! 
conditiooSa 

In  order  to  discuss  the  situation  in  a  dear  and  understandable  manner  it  # 
has  been  necessary  to  assume  a  definite  program  for  the  construction  of  suc- 
cessive rapid  transit  lines,  keeping  step  with  the  requirements  of  the  estimated 

growth  in  population,  thus  fixing  for  these  periods  specific  costs  of  construc- 
tion and  operation.  By  assuming  the  earhest  possible  dates,  regardless  of 
war  conditions,  it  is  thought  that  if  a  favorable  transportation  and  a  feasible 
financial  plan  can  be  developed,  postponement  to  any  later  date  will  only  tend 
to  increase  both  the  necessity  for  the  transit  facilities  and  the  assurance  of  suffi- 
cient earnings  to  support  them. 

iPiiitiiiiMwy     Physidl  CrWid'itiotMt 

'   To  summarize  the  foregoing  discussion  of  the  physical  requirements  of 
the  Qly  it  may  be  said  that : 

(a)  Detroit's  growth  in  population  and  area  has  now  continued  for 
such  a  period  of  years  and  through  so  many  changes  in  commercial,  political 
and  economic  conditions,  that  its  continued  future  development  to  a  city  of 
one  and  one^half  to  two  million  population  is  a  reasonable  prediction.  The 
natural  fears  of  some  at  the  time  of  our  previous  study  of  the  situation,  ( 1914) , 
tiat  iie  city  was  eicpcrieiicinif  an  unhe^tfay  boom  due  to  tenqx>rary  prosperity 
in  the  automobile  business  of  the  country,  seem  fully  diiproved  by  the  sulise- 
'^iisnt  developments* 

The  present  decreast  in  the  D.  U.  R.  passenger  earnings  are  indicative 
of  the  period  of  re^adjustment,  through  which  Detroit's  manufacturing  plants 
arc  passing  due  to  present  war  conditions.  This  decrease  appears  to  be  teBi> 
porary  and  while  it  may  be  accompanied  by  a  slowing  up  in  population  growth 
or  even  actual  loss,  the  resumption  of  growth  at  a  rate,  such  as  herein  shown, 
is,  we  believe,  to  be  confidently  expected  due  to  the  financial  straigdi  and 
diversity  of  the  City's  industries 

(b)  The  density  of  traffic  on  its  heaviest  surface  car  lines  is  in  eiccess,  I 
notably  on  Woodward  avenue,  of  corresponding  conditions  in  otiier  dties  I 
vilcfe  ca^d  transit  has  been  considered  a  necessaiy  and  legitim  / 

(c)  The  coogestiott  of  surface  car  traffic  at  the  center  of  tiie  City  even 
as  relieved  by  rerouting  is  only  tcn^orarily  reduced,  and  any  such  growth  of 

the  City,  as  now  seems  certain,  will  in  a  lew  years  cause  a  recturrence  really 

bad  cioiiditiimit« 


GSNBRAIr  BASIS  OF  RSPORT 


3S 


(d)  The  maximum  capacity  of  the  Woodward  avenue  surfoce  line  is 
practically  reached  unless  slower  speed  and  furdier  crowding  is  considered 
acceptable  to  the  public  Similar  conditkms  ai«  developing  on  other  lines. 

(e)  The  use  of  additional  paralld  street  car  lines  on  streets  adjacent 
to  Woodward  avenue  or  other  lines  are  of  doubtful  advantage  on  account  of 
the  dense  automobile  traffic  on  these  thoroughfares,  and  the  repeated  expe- 
rience in  Detroit  and  other  cities  of  the  persistent  tendency  of  passenger 
traffic  to  cling  to  the  main  business  streets  and  not  to  utilize  added  service  on 
parallel  lines.  Even  if  such  lines  were  built  and  patronized,  it  is  physically 
impossible  to  carry  them  to  the  general  ddtvery  district  ^  account  of  the 
peculiar  location  of  the  streets  in  this  area. 

(f)  All  the  traffic  and  physical  conditions  point  to  the  teasonableness 
of  developing  a  definite  plan  for  rapid  transit  at  this  time.  The  traffic  char- 
acteristics as  to  distribution  of  passengers,  their  districts  of  origin  and  desti- 
nation have  developed  quite  clearly,  particularly  in  the  past  four  or  five  years, 
so  that  the  rapid  transit  needs  of  the  immediate  future  at  least  can  be  seen. 

The  question  of  how  soon  construction  should  be  commenced  is  not  sus- 
ceptible of  demonstration  as  an  engineering  problem.  It  is  purely  a  matter 
of  public  policy.  We  can  only  analyze  the  facts  as  we  have  found  them,  and 
point  out  the  conditions  as  we  see  them  and  recommend  means  of  rdief  for 
present  needs  and  proper  provisions  for  future  requirements. 

It  is  within  the  province  of  this  Report  and  our  experience  to  point  out 
clearly  the  financial  difficulties  involved  in  building  a  modern  raj^id  transit 
system  in  a  large  city  and  the  cost  of  supporting  the  service.  For  this  reason 
the  following  discussion  of  the  proposed  physical  or  construction  program  is 
folkmed  by  a  chapter  on  the  financial  plan. 


I 


CHAPTER  11 


RAPID  TRANSIT  PLAN  AND  CONSTRUCTION  PROGRAM 

The  rapid  transit  requirements  of  Detroit,  based  upon  general  considera- 
tions, have  been  discussed  already.  In  the  analysis  of  the  present  traflk  con- 
ditions, the  influence  of  the  density  of  traffic,  len.^th  of  haul  and  volume  of 
transfer,  have  been  ix)inted  out  as  important  among  the  deciding  factors  in 
selecting  the  most  desirable  routes.  In  the  following  discussion  the  location 
of  the  most  necessary  high  speed  routes  will  I)e  approached  from  different 
view  points,  i.  e.,  from  the  angle  of  the  present  and  future  distribution  of  the 
population,  and  from  the  origin  and  destination  of  the  riding  public. 

R««id«itial  Distribiitiofi  of  Population  by  Four  Equal  City  Areas 

The  diagram  on  page  36  shows  the  distribution  of  population  in  the  City 
in  four  divisions  of  nearly  equal  area,  formed  by  Worxlward  avenue  as  the 
north  and  south  dividing  line,  and  by  Buchanan  and  Canfield  avenue  as  the 
east  and  west  dividing  line.  The  shaded  rectangles  indicate  the  population  in 
these  four  divisions  of  the  City,  also  the  density  and  increase  of  the  ix)pulation 
for  the  years  1910,  1913,  1916.  The  remarkable  uniformity  in  the  increase 
east  and  west  of  Woodward  avenue  from  1910  to  1916  and  the  relatively 
uniform  distribution  of  the  population  on  either  side  of  this  axis  is  noteworthy 

Here  then  is  clearly  shown  the  residential  location  in  four  divisions  of 
the  total  population  of  Detroit.  This  means  the  general  location  in  four 
broad  divisions  of  the  origin  and  destination,  morning  and  evening,  of  the 
City's  daily  riders. 

Map  I  showing  the  p<^Iation  of  Detroit  by  one-half  mile  squares  for 
the  years  1904,  1907,  1910,  1913  and  1916  indicates  that  in  the  past  three 
years  the  heaviest  growth  has  occurred  in  the  northwest  part  of  the  City  along 
Grand  River  and  Michigan  avenues  and  in  the  northeast  part  of  the  City,  in 
anrl  near  Ste.  Claire  Heights.  By  taking,  however,  the  period  from  1910  to 
191^)  and  combining  the  increases  it  is  found  that  a  remarkably  uniform  rate 
of  increase  has  occurred  over  the  entire  City.  These  increases  are  grouped 
very  uniformly  east  and  west  of  W'fxxlward  avenue  and  north  and  south  of  the 
axis  of  Canfield  avenue,  as  shown  on  the  previously  mentioned  diagram. 

The  foregoing  map  also  shows  that  there  are  an  average  of  over  28,000 
people  per  mile  of  line  resident  in  a  district  extending  one-half  mite  OR  either 
side  of  Woodward  avenue  for  the  first  four  miles  north  of  Grand  Circus. 
Similar  districts  adjacent  to  Gratiot  avenue,  show  an  average  of  25,000  peo- 

37 


RSPOKT  ON  A  RAPID  TRANSIT  SY8TB1I  VOR  DBTROIT 


pl«  per  mile  of  line;  along  Michigan  avenue,  20,000;  Fort  street,  16,000,  and 
Jefferson  avenue,  x  1,000  people  While  it  is  true  that  dense  residential  dis^ 
tricts  do  not  always  produce  a  proportionate  number  of  passengers,  neverthe- 
less, the  foftgoinif  relative  figures  indicate  dearly  the  importance  of  Wood- 
ward avenue  and  the  east  and  west  rapid  transit  line  paralleling  Michigan  and 
liiatioi  'avenues* 

Bhupioyiiiciil  l^ttribiitioii  in  Detroit 

The  other  termini  of  the  daily  trips  of  rush  hour  passengers  may  be  seen 
in  general  on  diagram  page  39,  stiowing  the  location  of  places  of  employment, 
factory  and  business,  throughout  the  City.  The  circles  placed  at  d^erait 
pc»nts  on  this  diagram  indicate  by  their  area  the  rdative  number  of  employees 
in  each  of  these  establishments  during  the  summer  of  191 7.  A  tabulation  of 
the  larger  factories  in  Detroit,  their  location  and  the  number  of  employees  is 
given  m  Appendix  VII,  for  the  years  1914  and  1916.  The  distribution  of 
these  employees,  as  indicated  in  our  previous  report,  is  very  diversified  for 
the  individual  factories.  Nearly  all  the  large  factories  draw  their  employees 
from  all  parts  of  the  City.  A  recanvass  of  some  of  the  principal  factories  in 
1917  compared  with  our  1914  canvass  indicates,  as  would  be  expected,  the 
location  of  a  somewhat  larger  proportion  of  such  employees  within  walking 
distance  of  the  factories.  The  same  wide  scattering  of  these  factory  workers 
into  the  various  resident  districts  is  still  the  predominant  condition. 

In  addition  to  these  facts  there  must  be  considered  the  known  plans  for 
developing  employment  districts  by  the  location  of  large  factory  centres.  In 
this  class  must  be  included  the  tractor  factory  of  the  Ford  Company  to  be 
built  at  Baby  Creek  and  River  Rouge  on  the  westerly  outskirts  of  the  City. 
The  building  of  the  Pennsylvania  Railroad  into  this  western  part  of  the  City 
will  also  undoubtedly  be  a  factor  in  building  up  residential  and  business  dis- 
tricts. 

At  the  present  time  the  factiny  locations  are  grouped  principally  along 
the  Grand  Trunk,  Michigan  Central  and  the  Detroit  Grand  Haven  Railroad 
lines  and  the  river  front,  the  principal  increases  noted  since  the  1914  inves- 
tigation having  been  along  the  railroads  rather  than  along  the  river.  The 
residential  population  along  the  river  also  has  shown  a  decrease,  the  general 
tendency  being  for  both  populaticm  and  factory  centres  to  move  westward  and 
northward. 

.BiiMng  Activity  Shown  by  City  Permits 

An  examination  of  the  building  permits  for  the  years  1914,  191 5  and 
1916  has  been  made  and  charted  on  map  2.  From  this  the  previously  noted 


EXPLJtH/maH 


msr/uBUTiON  orpopuLAnoN 


6CAl£ 


1 


wmmmmmmmm. 


SOO.CXX)  4CX3.000 


500. 00« 


MAP  1 


m        RBPORT  ON  A  RAPID  TRANSIT  SYSTEM  POR  DBTROIT 


increase  in  liie  pofmlation  of  the  northwestern  part  of  the  City  is  very  appar- 
ent; also  the  increase  in  popolation  in  the  nortlieasterly  part  of  the  City  just 
west  of  Ste.  Claire  Heights. 

Median  Lines  of  Population 

On  diagram,  page  36,  the  east  and  west  median  line  has  been  drawn  in 
solid  hlack.  This  line  indicates  that  east  and  west  of  any  point  in  this  line, 
the  same  number  of  people  are  resident  within  the  City  limits.  The  very 
close  approximation  of  this  line  to  Woodward  avenue  is  obvious.  Another 
line  marked  "north  and  south  median  line"  divides  the  population  north  and 
south  of  this  line  into  equal  parts  and  crosses  Woodward  avenue  between 
Ferry  and  Frederick  avenues,  about  two  and  one-half  miles  north  of  the  City 
Hall. 

A  judicious  interpretation  of  the  above  facts  can  be  utilized  in  deciding 
upon  future  ra|Md  transit  lines  for  the  enlarged  city. 

iMMiwwi  AvcntKt  tne  imtuu.  ici^Mft  icmtif  une 

In  our  1914-1915  fqiort,  Woodward  avenue  was  pointed  out  as  the  most 
logical  and  promising  location  for  a  ra{nd  transit  line  in  Detroit  In  all  the 
traffic  chatacteristics  in  which  it  was  then  apparent,  that  the  Woodward  ave- 
nue line  exceeded  others  in  the  City,  it  has  since  increased  in  greater  propor- 
tion than  any  other  line. 

The  rapid  change  of  Woodward  avenue  from  a  residential  to  a  business 
street  throughout  most  of  its  length  has  been  increasingly  apparent.  This 
undoubtedly  has  been  a  material  factor  in  attracting  a  dispfoportionate  amount 
of  the  traffic  increase  of  the  City. 

Taking  into  consideration  the  characteristics  of  the  traffic  growth  pre- 
viously discussed,  the  increases  in  and  location  of  residential  districts,  as  just 
mentioned,  and  the  trend  of  factory  location,  it  is  seen  that  Woodward  avenue 
is  the  heaviest  trafficked,  the  most  centrally  located  and  the  most  rapidly 
growing  thoroughfare  in  the  City,  Along  its  entire  length  it  is  becoming 
more  and  more  a  delivery  district  for  passengers  on  the  street  itself,  and  the 
territory  on  either  side  is  steadily  increasing  in  population  density.  In  all  of 
lliae  characteristics  the  increases  taken  as  a  whole  are  greater  than  on  any 
other  line. 

Referring  to  diagram,  page  36*  it  will  be  seen  that  the  east  and  west 
median  line  neatly  coincides  with  Woodward  avenue,  therdij  indicating  its 
importance  due  to  central  location  and  as  an  originating  line,  while  on  the 
other  hand,  it  leads  through  and  directly  into  the  most  important  business 
centre  of  the  City.  This  unique  location  is  one  of  the  strongest  features,  favor- 
ing Woodward  avenue  as  the  most  desirable  locatkm  for  an  early  high  speed 
line. 


4 


4 


i 


(I 


ICAP  2 


I 


HAPID  TRANSIT  PLAN  AND  CONSTRUCTION  PROORAM 


41 


This  line  has,  therefore,  been  selected  in  the  following  plan  as  the  initial 
rapid  transit  line  of  the  City,  to  be  followed  by  an  east  and  west  line,  which 
should  intersect  it  at  or  near  the  centre  of  the  central  delivery  district.  This 
district  is  still  located  along  Woodward  avenue  and  the  immediately  adjacent 
streets,  and  extends  from  the  Grand  Cirais  to  the  river. 

Other  Rapid  Transit  Lines 

On  map  3  a  jxissible  c<jmplete  rapid  transit  system  is  shown  for  supplying 
ihe  needs  of  the  City  of  DetnMt.  when  it  reaches  about  2,000,000  population. 
On  this  map  showing:  the  existino;  outlines  of  the  City,  has  been  added  an 
extension  of  the  City  area  sufficient  to  allow  of  an  increase  in  the  population 
to  2,000,000  people  without  increasing  the  average  population  density  per 
acre  above  twenty  people. 

In  order  that  a  rapid  transit  system  for  the  City  shall  serve  the  Ion.? 
haul  passengers  and,  at  the  same  time,  relieve  surface  car  congestion,  the  pros- 
pective lines  should  be  laid  out  in  general  so  as  to  serve  the  main  residential 
districts  and  connect  them  with  the  delivery  districts  by  the  shortest  routes. 

In  the  case  of  a  long  narrow  city  such  as  New  York,  when  it  was  con- 
fined to  Manhattan  Island,  the  traffic  and  particularly  the  long  distance  riders 
used  almost  exclusively  the  hnes  extending  north  and  soiiih,  the  long  axis 
of  the  city.  When,  however,  the  problem  of  a  radial  city,  such  as  Detroit,  is 
approached,  the  conditions  are  found  to  be  quite  different.  The  traffic  here 
is  destined  to  either  a  ring  of  outlying  factories  or  to  the  center  of  the  radiat- 
ing system  of  streets,  where  is  located  the  general  business  and  retail  district. 

Having  selected  Woodward  avenue  as  the  initial  rapid  transit  line  of  the 
City,  and  thus  having  provided  for  rapid  transit  north  and  south  along  the 
longest  and  heaviest  existing  line,  the  next  step  would  obviously  Ije  a  line 
through  the  principal  delivery  district  at  right  angles  to  the  above  line  and 
traversing  the  territ<jry  most  in  need  of  rai)i(l  transit  service.  A  line  laid  out 
directly  along  or  near  the  north  and  south  median  line,  diagram.  ])age  30.  wmld 
obviously  not  render  such  service  to  the  public,  as  will  the  W'oxlward  avenue 
route,  for  the  reascm  <hat  while  centrally  locatetl  it  would  not  lead  into  the 
delivery  district  except  by  transfer  or  detour.  The  selection  of  a  crosstown 
rapid  transit  line  is,  therefore,  here  governed  more  largely  by  the  indications 
of  existing  and  probable  future  traffic  conditions  than  by  residential  density. 

On  map  3  there  are  shown  two  principal  east  and  west  routes,  one  in 
general  parallel  with  Jefferson  avenue  on  the  east,  and  Fort  street  on  the 
west.  North  of  this  and  crossing  Woodward  avenue  at  the  Grand  Circus 
another  east  and  west  route  is  shown  paralleling  Michigan,  Gratiot  and  Forest 
avenues  and  extending  from  Spring\vells  to  east  of  Ste.  Qaire  Heights. 

Another  line  parallel  with  Grand  River  avenue  is  indicated  joining  the 
Michigan  avenue  line  near  the  Grand  Circus. 


Anollicr  route  is  ^wn  pastiiig  throogli  Hamtmnck  near  or  upon  Jot. 
Camimii  avemie  to  tbe  Mldiigan  Central  tracks,  thence  parallel  with  these 
tracks  and  tnrninf  west  tmder  the  Gfaad  Boulevard  to  liveniois  and  son^ 
tO'  Foil  street. 

It  is,  of  course,  obvious  that  the  building  of  all  of  these  lines  immediately 
would  be  financially  ruinous  to  whoever  undertook  to  supply  the  money  for 
financing  such  a  project.  The  constriicti'Mi  must,  therefore,  be  contemplated 
in  successive  steps  and  of  these  Woodward  avenue  is  the  first,  to  be  followed 
by  an  east  and  west  line  parallel  with  Michigan  avenue  and  Gratiot  avenue, 
as  above  described.  The  third  step,  present  indications  would  suggest,  would 
be  a  line  located  along  or  near  Jefferson  avenue.  This  line  has  many  claims 
to  ffefeience  in  the  way  of  a  great  proportion  of  long  distance  riders  from  the 
outl^riiif  districts,  i.  e.,  east  of  Bdlc  Isle  Bridge  as  far  as  Grosse  Pdnte.  Thie 
westerly  end  of  this  line^  if  extended  beyond  Woodward  aircntie  akmg  Fort 

ali'iit^t  f1kw%  iMit  ftt'  fMMwnt  ntsdw  ft  vntaA  n^wmniiuf'    This  tniii>iit  howcviM*  nmvc 

the  best  method  of  reaching  the  district  that  will  undoubtedly  grow  up  along 
the  River  Roqge  in  connection,  with  the  Ford  tractor  plant  This  same 
district  might,  on  the  other  hand,  he  reached  from  th^  Micfaigan  avenue  line. 

The  above  routes  are  the  most  probable  general  arteries  of  travd  ak»g 
which  rapid  trmit  in  the  future  will  be  justified.  The  route  which  at  present 
can,  he  considered  fully  warranted  is  that,  ^on  Woodward  avenue. 

Types  oi  Rapid  Transit  Construction — Subway  and  Overhead 

In  order  to  lay  out  a  financially  possible  system,  which  may  be  realized 
within  a  reasonable  length  of  time  in  such  a  situation  as  that  presented  by 
Detroit,  the  necessity  for  low  construction  cost  is  obvious. 

In  the  heart  of  the  City,  where  the  conjTestion  of  vehicle  and  street  car 
traffic  and  even  pedestrian  crossing  traffic  has  become  very  serious,  no  other 
s<ilution  than  by  a  subway  system  is  possible.  When,  however,  this  extremely 
congested  central  district  is  relieved,  further  extension  of  subways  seems  of 
doubtful  advisability  as  a  general  method  of  reaching  the  many  outside  resi- 
dential districts  of  a  radial  city,  and  for  such  extension  overhead  railways  are 
recommended.. 

The  subway  system  laid  out  on  mi^  $  is  to  have  a  main  north  and  south 
two-track  trunk  line  on  Woodward  avenue  from  Woodbridge  street  to  north 
of  Grand  Boulevard,  where  a  portal  will  allow  the  trains  to  rise  to  the  surface 
and  by  an  incline  to  reach  overhead  tracks  extending  to  Manchester  avenue 
and  later  to  the  City  limits.  This  subway  is  to  be  crossed  by  an  east  and  west 
low  level  subway  line  at  Grand  Circus.  At  this  point  it  is  intended  to  ulti- 
mately devekip  a  general  transfer  station  of  hitgt  capacity,  as  shown  on 
diagram,  page  43,  Grand  Circus  being  selected  for  this  purpose  in  order  to 
.scftrate:  ^s  passenger  movement,  from  the  present  congestion  at  the  City 


I 

IT 


If 


RAPID  TRANSIT  PLAN  AND  CONSTSIfCTIQN  PROGSAM 


47 


Hall  and  to  aid  in  the  extension  northward  of  the  retail  and  husiness  district 
The  east  and  west  subways  on  the  Fort -Jefferson  and  Grand  River  lines  are 
shown  of  only  such  length  as  are  absolutely  necessary  to  reach  territory  where 
property  can  be  obtained  at  reasonable  cost  for  oxerhead  railway  location  or 
where  portals  can  be  located  with  minimum  obstruction  of  cross  streets. 

Details  of  the  subway  type  of  rapid  transit  construction  have  been  dis- 
cussed incur  191 5  report. 

On  map  3  the  portion  of  the  routes  previously  described,  which  are  shown 
in  heavy  broken  lines,  are  indicated  for  subway  construction  and  the  heavy 
solid  lines  for  overhead  railways.  It  must  be  understood  in  this  connection 
that  "Overhead  Railways"  is  not  intended  to  mean  the  familiar  forms  of  the 
"elevated"  structures  in  New  York  and  Chicago.  The  type  suggested  for 
Detroit  is  one  with  a  solid  dedc  with  stone  ballast  under  the  tracks,  thereby 
reducing  the  noises  to  the  minimum  and  allowing  of  a  much  m&re  pleasing 
appearance,  as  illustrated  on  page  44. 

On  a  map  of  Detroit,  of  a  scale  possible  to  place  in  this  report,  the  exact 
location  of  these  lines  could  not  be  clearly  shown.  It  is  intended,  however, 
in  many  cases  that  the  overhead  portions  of  the  rapid  transit  lines  should  be 
built  upon  purchased  right-of-way,  using  alleys  and  the  back  ends  of  lots. 
This  type  of  construction  is  illustrated  on  diagram,  page  45,  showing  also 
the  valuable  additions  gained  in  opening  up  new  arteries  for  vehicle  traffic. 
Estimates  of  the  cost  of  such  a  right-of-way  have  been  i>repared  from  ap- 
praisals made  for  the  City  by  the  Detroit  Real  Estate  Board  without  charge. 
The  portion  of  the  rapid  transit  routes  for  which  estimates  of  right-of-way 
were  prepared  is  shown  on  diagram,  page  46.  In  s<^me  cases,  however,  it  will 
be  necessary  to  occupy,  at  least  for  a  portion  of  the  way,  the  center  of  the 
wider  streets  in  the  outlying  districts. 

Where  it  may  be  necessary  to  locate  a  rapid  transit  structure  upon  the 
street,  the  type  shown  in  the  accompanying  diagram,  page  44,  is  recommended. 
In  this  type  a  central  oohmm  is  pliuxd  between  the  existing  surface  car  tracks 
the  latter  bemg  spread  to  allow  clearance  for  the  surface  cars.  Such  a  struc- 
ture would  oSer  the  minimum  of  obstrtietkm  to  the  street  and  practically 
no  obstruction  of  light  or  access  to  the  sidewalks  or  buildings  on  streets 
eighty  (80)  feet  wide  or  over. 

A  unified  system  combining  the  three  types  of  constmctioii,  sorfoce,  over- 
head and  subway,  has  been  extensively  worked  out  in  Boston,  where,  however, 
the  open  type  of  elevated  structure  is  used.  Such  a  system  is  also  exemplified 
in  Philadelphia  and  was  the  basis  of  the  recommendations  for  a  City  system 
in  Chicago  made  by  the  Chicago  Traction  and  Subway  Commission,  who 
reported  in  January,  191 7.  In  the  dual  rapid  transit  system  just  nearing 
completion  in  New  York,  elevated  structures  have  been  extensivelv  introduced 
for  the  outlying  districts.    In  fact  so  enoniious  became  the  costs  of  this  ex- 


RAPID  TRANSIT  PI^AN  AND  CONSTRUCTION  PROORAM 


4f 


tended  system  that  the  resort  to  this  form  of  rapid  transit  Hne  was  imperative. 
It  is  in  fact  impossible  in  any  other  way.  than  that  above  outHned,  to  work  out 
a  system  that  will  cover  the  wide  areas  of  relatively  low  ])opulation  density 
of  the  American  "Greater  Cities."  It  is  believed  that  in  the  plans  herewith 
submitted  the  objectionable  features  of  what  is  ordinarily  known  as  an 
"elevated  railway"  have  been  reduced  to  a  niinimuni. 

Plainly  stated  the  question  of  the  type  and  extent  of  rapid  transit  to  be 
built,  ultimately  depends  upon  how  the  first  cost  is  to  be  met  and  the  interest 
thereon  is  to  be  paid.   This  is  discussed  fully  untler  the  financial  plan. 

Conatnictioii  Progiam  for  Initial  Period 

On  diagram,  page  48,  is  shown  the  rapid  transit  system,  which,  utider 
the  conditions  assumed  in  the  financial  plan,  could  be  de\  eloped  during  the 
first  ten  years  after  a  definite  policy  r^rding  the  traction  problem  of  the  City 
is  decided  upon.  On  this  ttiap  the  heavy  broken  lines  indicate  subways  or 
underground  construction,  while  the  heavy  solid  lines  indicate  overhead  rail- 
ways. 

The  high  speed  line  on  Woodward  avenue  is  planned  to  be  built  first  as 
far  as  Manchester  avenue,  the  undergroimd  i)ortion  extending  from  Wood- 
bridge  street  to  north  of  Grand  Boulevard.  The  short  subxvay  branches  for 
the  crosstown  lines  could  be  built  next  and  might  be  used  by  certain  street  car 
lines  for  the  purpose  of  relieving  the  downtown  coi^iestion.  These  subway 
branches  could  then  be  extended  for  rapid  transit  and  connected  to  overhead 
construction  in  the  location  and  to  the  extent  shown  on  diagram,  page  48,  or 
as  far  as  the  financial  situation  from  time  to  time  ma}  permit.  In  this  manner 
it  is  intended  to  develop  as  rapidly  as  consistent  with  a  self  supporting  system 
and  good  service,  an  initial  set  of  rapid  transit  routes  which  will  serve  all 
parts  of  the  City  and  which  will  be  fed  by  transfer  from  a  network  of  surface 
lines  leading  through  and  from  the  less  densely  settled  districts  of  the  City. 

Surface  Line  Extensions 

The  solution  of  the  transit  problem  of  Detroit  depends  only  partly  on  the 
construction  of  a  rapid  transit  system.  The  surface  line  system  also  will  have 
to  be  developed  to  supply  local  traffic  within  the  growing  districts  and  to  serve 
as  feeders  to  the  high  si>eed  lines. 

It  is  estimated  that  for  the  anticipated  population  growth  and  considering 
the  necessary  extension  of  the  city  limits,  an  average  >  early  increase  in  the 
surface  system  of  alxnit  six  miles  of  single  track  will  be  needed. 

^  On  niap  3  a  system  of  street  car  extensions,  designed  to  serve  directly  all 
residential  districts  as  they  grow,  has  been  laid  out.  These  extensions  are 
planned  to  not  only  carry  short  haul  passengers,  but  also  to  supply  easy  means 


m        mPORT  ON  A  RAPID  TRANSIT  SYftTSM  FOR  OBTROIT 

of  reaching  the  rapid  transit  lines  by  free  transfers  and  possibly  by  devdop- 
nient  of  sp«aal  transfer  stations.  ^   /  ^ 

Tht  question  of  the  order  of  construction  will  have  to  be  decided  every 
year  by  agitemmt  between  the  Street  Railway  Commission  and  the  Company, 
but  the  ailditions  should  always  be  made  so  as  to  increase  the  service,  which 
the  surface  lines  are  expected  to  render  as  feeders  for  the  rapid  transit  system. 

Ilitaturban  Lines. 

Provision  is  to  be  made  for  operating  the  interurban  cars  over  the  rapid 
transit,  overhead  and  subway,  lines.  The  advantage  to  both  passengers  and 
companies  in  entering  into  the  heart  of  the  City,  avoiding  all  street  congestion, 
is  obvious.  This  will  warrant  a  considerable  investment  by  the  Interurban 
Companies  either  in  concessions  as  to  the  use  of  their  existing  surface  tracks, 
as  the  City  limits  are  extended,  or  in  actual  contributions  towards  the  cost  of 
the  terminal  facilities  supplied  to  them. 


CHAPTER  m 


BASIS  OF  UNIFIED  OPERATION 

A  Single  Unified  System  of  Surface  and  Rapid  Transit  Lines  Whether 
Privately  or  Publicly  Ovmed  or  Operated 

In  most  American  cities  surface  lines  and  rapid  transit  lines  have  been 
developed  as  independent  and  competitive  systems.  A  study  of  the  resulting 
conditions  at  the  present  time  in  these  cities  shows  clearly  from  the  standpoint 
of  the  public,  the  investor,  and  the  railway  companies  themselves  that,  could 
a  carefully  designed  unified  system  be  substituted  for  the  competitive  lines 
built  daring  the  past  twenty  years,  much  more  desirable  results  for  all  con- 
cerned would  now  be  obtained.  The  creation  of  such  a  unified  system,  of 
course,  means  a  monopoly  of  city  transportation,  which,  in  the  interest  of  the 
pubfic*  denunds  definite  and  sktllfial  public  r^ulation. 

It  has  been  clearly  shown  that  the  continued  operation  of  competitive 
systems  in  a  dty,  in  order  to  be  boiefidal  to  the  general  public,  requires  such 
a  rapidly  growmg  patronage  as  will  allow  the  business  to  cany  a  duplication 
of  investment  In  oompetittve  traction  situations  the  history  has  been  that 
ultimately  one  or  the  odier  of  the  competitors  has  foiled  to  receive  sufficient 
return  upon  his  investment  to  continue  the  struggle,  and  either  a  division  of 
territory  has  resulted  or  the  competing  lines  were  consolidated  and  merged 
into  one  company.  The  unnecessary  duplications  of  lines  and  investment  then 
become  apparent,  but  the  lines  being  built  and  habitually  used  by  patrons 
located  along  them,  the  latter's  interests  must  be  considered.  Then  follows 
the  usual  story  of  lines  not  only  loaded  with  duplicated  investment  but  main- 
taining unnecessary  duplication  of  service,  thereby  burdening  the  entire  system 
with  an  uneconomic  operating  condition  that  reacts  directly  upon  the  quality 
and  quantity  of  service  that  can  be  rendered  to  the  public. 

Assuming  a  self-supporting  city  transportation  svstem.  operated  under 
commission  supervision,  the  fact  is  that  the  gross  revenue  to  be  obtained  is 
limited  within  quite  a  narrow  margin.  The  number  of  riders  and  the  rate  of 
fare  cannot  be  greaUy  varied  by  regulation  except  that  added  facilities  usually 
increase  the  travd.  It,  therefore,  is  of  the  greatest  importance  to  the  public 
not  only  to  see  that  proper  r^;uUition  of  operation  and  fares  is  maintained  but 
also  that  the  c^tal  invested  is  so  distributed  as  to  give  maximum  service 
lor  the  money  eiqwnded 

Detroit  aft  the  present  time  is  at  the  threshold  of  the  rapid  transit  period 
and  if  due  heed  is  paid  to  the  warnings  contained  in  the  experience  of  cities 

SI 


St        MSPOST  ON  A  BAPID  TUUftlT  gTSTBll  FOR  DSTKOIT 


that  have  alreaiiy  entered  this  stage  in  their  fievdopnicnt,  it  should  be  possible 
to  lay  out  a  system  giving  the  public  maximum  service  with  the  minimum  of 
expenditure.  With  only  a  single  surface  line  system  in  existence,  a  gnat 
opportunity  is  presented  for  producing  a  plan  whereby  a  duplication  of  invest- 
ment in  rapid  transit  and  street  car  lines  may  be  avoided  and  the  maximum  of 
service  obtained. 

In  a  city  with  the  size  and  physical  characteristics  of  Detroit,  the  building 
of  an  independent  rapid  transit  system  competing  with  the  existing  surface 
hnes  would  be  a  very  doubtful  financial  venture.    On  the  other  hand  the 

development  of  a  rapid  transit  system  as  a  part  of  a  single  unified  system  for 
the  City  presents  quite  a  different  and  much  more  favorable  situation.  Both 
these  points  will  be  clearly  brought  out  in  the  discussion  of  the  financial  plan. 


thh  mmo  mmmm  froposed  rapid  transit  lines 
mmm  wmmm  surpacb  car  schedules 


TioM  of  Jdwaqr 

Saving  by 
Rai^ 
TiaiMit 

To 

.  Vim 

Street 
Car 

1 

Rapid 
Transit 

WoCMtwird  and 
MaadMstcr  Av«s. 

Forest      .  . 

Wbodivanl  . 

M  IDlll. 

lOwia. 

CityHaU  .  . 

Woodmmt  . 

liada. 

Woodmeve 
aad  Port.  . 

Woodmnd 
aad  Port  . 

iBilUB. 

42  min. 

26  min. 

Jcfcfioa  and 
Allv  JIaid' 

Woodward 
MidJiAinoa' 

TSmni. 

Hiaia. 

aiaua 

OlyHaU  .... 

Woodmere 

and  Fort  . 

Fort  .... 

30  min. 

11  min. 

Jefferson  and 
Alltr  RiMd^ 

SB  mill. 

« 

OT*  UMM. 

•  nnn. 

Michigan  and 
livemois .  .  .  . 

City  Han 

Michigan  .  . 

flftmtn. 

16  ana. 

Ilmia. 

Gtmtiot 
aad  BwiMr 

Mirhtgan 
'and  Gratiot 

Maoia. 

M  inia> 

20  min. 

Okftm  .... 

Gratiot  .  . 

liaiia. 

19  till.'" 

9  min. 

Service  Greatly  Improved  by  Unified  Opcratioii 

Besides  the  financial  considerations  a  much  more  convcniait  service  it 
possible  to  the  public,  where  a  system  is  maintained  with  single  unified  oper- 
ation giving  transfers  between  snrlMie  and  rapid  transit  lines  and  where 
surface  lines  are  a^^^jH^I  feeders  for  the  high  speed  trunk  lines  in  the 
outlying  districts.   IWKnds  to  increase  the  uie  of  surface  cars  for  short 


BASIS  OF  UNIFIED  OPERATION 


53 


haul  local  business,  and  the  carrying  of  passengers  on  the  longer  trips  by 
trains  on  the  rapid  transit  system. 

An  automatic  division  of  these  two  classes  of  passengers  is  thus  arrived 
at,  resulting  in  the  relief  erf  the  congestion  and  crowdit^  of  surface  cars.  The 
greatest  benefit  to  the  pubitc,  however,  is  obtained  by  the  very  considerable 
reduction  of  the  time  of  long  distance  travd,  a  few  examples  of  which  are 
shown  in  the  preceding  table. 

A  Ski0e  Uniionn  for  the  Whole  City  With  Free  Transfers  Between 
SuffKe  and  R^iid  Transit  Lines  is  Proposed  and  Considered  Desirable 
There  arc  several  divergent  views  as  to  the  proper  financial  relation  of 
a  city  transportation  system  to  the  public.  Without  attempting  a  discussion 
of  this  complicated  subject,  a  statement  may  here  be  made,  that  it  is  at  least  a 
thoroughly  defensible  proposition  that  the  riding  public  should  pay  a  fare 
sufficient  to  support  the  system  which  they  use  and  that  this  service  should  not 
be  a  burden  i^on  the  general  taxable  property  of  the  city.  The  plans  herein 
outlined  are  wofked  out  upon  this  basis. 

The  omvenience  of  a  single  uniform  fare  over  the  entire  city  is  uni\  er- 
sally  recognized.  The  advantages  and  justice  of  such  a  uniform  fare  with 
transfer  privileges  may  be  seen  by  examining  the  facts  developed  in  our 
present  investigation.  Take  for  instance  the  operation  of  a  rapid  transit 
system  on  Woodward  avenue  as  an  initial  step.  Should  this  be  found  to 
require  an  increase  of  the  present  fare  throughout  the  City  in  order  to  support 
the  new  investment,  it  would  at  first  sight  appear  to  involve  the  taxing  of 
the  riders  in  other  parts  of  the  City  for  the  benefit  of  the  Woodward  avenue 
passengers.  The  fact  is,  however,  that  only  about  half  of  the  passengers  on 
Woodward  avenue  begiti  and  end  their  trip  on  that  line  while  the  other  half 
reach  \\'oodward  avenue  by  transfer  from  some  intersecting  line  and  l8 
per  cent  of  these  by  two  transfers,  using  two  other  lines  and  most  of  them 
coming  from  remote  parts  of  the  city.  With  a  rapid  transit  system,  as  pro- 
posed, in  the  fully  develoi)ed  system  this  proportion  of  people  using  both 
systems  would  be  maintained  and  probably  increased.  In  other  words  the 
boiefilS  of  high  speed  transportation  would  be  well  divided  between  all  dis- 
tricts of  the  dty  and  the  utilization  of  rapid  transit  by  the  public  generally 
on  particnter  lines  would  be  found  fairiy  evenly  divided  with  those  using  only 
surlMse  or  oidy  rapid  transit 

The  questkm  of  a  umfonn  fare  for  different  lengths  of  rides  and  on 
heavfly  ^ffidml  and  lightly  trafficked  portions  of  the  same  system  has  been 
passed  upon  by  some  of  the  public  relating  bodies,  notably  the  Public  Service 
Commission  of  Massachusetts,  one  of  the  oklest  and  most  conservative  bodies 
of  this  nature.  In  their  report  and  order  upon  the  Middlesex  &  Boston  rate 


m      mmmm  m  a  sahb  rmam  wmmm  for  dstsoit 


case,  October  28,  1914  (P.  S.  C.  553),  tliey  lay  down  as  aound  the  policy  of 
a  flat  rate  within  rcaaonable  limits : 

**OurjM)|mlation  cento  profit  m 
railway  lines  mmfyiag  into  rural  sections.  This  p3ky  of  a  flat 
rate  within  reasonable  limits  which  does  in  effect  require  short  ride 
I»trons  to  contribute  to  the  larger  cost  of  the  long  rides,  has  been 
the  pohcy  of  the  Commonwealth  for  many  years.  It  really  underlies 
the  fiw-cent  fare  provision  of  the  Elevated  and  West  End  companies 
m  metropolitan  Boston." 

It  must  be  understood  tiiat  this  uniform  five-cent  fare  provision  here 
referred  to  ^ipiies  to  the  use  of  surface  and  elevated  lines  and  universal  trans- 
fers  practically  over  the  whole  area  of  the  City  of  Boston. 

late  ol  ¥mm  mmm  Be  lladt  Dqiendent  Upon  the  Cost  of  the 

The  use  of  a  fixed  fare  for  a  long  period  of  years  has  been  detrimental  to 
the  proper  development  of  many  city  transportation  systems  and  in  some  cases 
has  greatly  delayed  the  supplying  of  adequate  service.  The  fixing  of  a  per- 
manent fare  at  too  high  a  rate  is  unjust  to  the  public  and  at  too  low  a  rate 
must  injure  th6  paHic  by  giving  them  inadequate  accommodations.  In  the 
first  case  the  system  will  bra^a  subject  for  ^)eculative  investment  and  in 
the  second  case  the  pnbli4|||||^  'eiren:tually  through  poor  service,  and  the 
conqnny  and  investors  by  financial  embarras»nent. 

The  ahnost  universal  use  of  a  five-cent  fare  for  street  car  systems  in 
large  cities  throughout  the  country  was  initiated  during  the  horse  car  period 
or  the  early  electric  railway  period  and  often  very  large  apparent  profits  were 
at  first  realiied  With  the  introduction  of  improved  mechanical  transporta- 
tiom,  cable,  electric,  and  later  elevated  and  subway  systems,  the  amount  of 
investment  in  dty  transportation  has  increased  out  of  all  proportion  to  the 
revenue  With  the  present  ^tem  of  PuWic  Service  Commission  control  of 
accounting  and  the  strict  requirements  for  depredation  reserves  and  sinking 
funds,  the  former  apparent  profits  have,  in  many  instances,  practically  disap- 
pcarecL 

In  Boston,  on  the  unified  surface,  elevated  and  subway  system  under 
rigid  piiilic  service  refutation,  one  dollar  of  revenue  in  1897  was  ^ceived 
i>pm  $2.96  mvested,  while  in  1916  this  investment  had  increased  to  $6  39 
for  one  dollar  of  annual  revenue.  With  a  fixed  five-cent  to  the  inevitable 
ultimate  embarrassment  of  the  company  is  obvious.  In  no  other  line  of  busi- 
ness has  the  price  of  the  commodity  produced  been  fixed  and  the  development 
of  the  business  and  the  quality  of  the  output  forced  to  conform  without 
damage  to  the  product,  and  this  condition  is  at  the  root  of  the  trouble  ex- 


BASIS  OF  UNIFIED  OPERATION  5S 

perienced  with  dty  transportation  systems  botii  by  the  public  and  the  com- 
panies. 

In  the  plan  submitted  in  this  R^rt  it  is  proposed  to  make  possible, 
under  Commission  regulation,  a  change  in  fare  with  change  in  cost  of  tiic 
service.  The  limiting  conditions  are  to  be  the  quality  and  quantity  of  service, 
the  actual  cost  of  opo-ation  and  a  return  on  the  invesUuent,  sudl  as  will 
secure  the  necessary  capital  for  the  undertaking. 

System  To  Be  Self-Supporting 

The  condition  of  maintaining,  out  of  earnings,  an  adequate  return  on 
the  investment  over  and  above  operating  expenses,  embodies  the  essential 
requirements  of  a  self-supporting  transportation  system,  as  proposed  herdn. 
The  entire  unified  system  as  herein  contemplated  is  to  be  built,  equipped  and 
financed  on  the  basis  of  actual  cost.  If  the  City  wishes  at  any  time  to  in- 
crease the  rapid  transit  system  beyond  the  self-supporting  limit,  as  is  proposed 
in  Philadelphia  and  as  has  been  done  in  New  York,  it  may  do  so  under  this 
plan,  as  a  method  of  accelerating  the  building  program.  In  such  an  event, 
however,  the  City  must  provide  for  the  payment  of  any  additional  interest 
charges,  if  so  incurred,  by  levying  taxes. 

The  plan  here  kiid  out  is  estimated  to  be  sdf-supporting  on  an  average 
fare  of  five  cents,  with  free  transfers  throughout  tiie  thirty  year  period  up 
to  1950.  This  figure  of  five  cents  is  used,  not  to  indicate  a  fixed  fare,  but 
quite  the  contrary.  The  calculation  of  the  elaborate  earning  tables  with 
changeable  rates  of  fare,  introduced  so  many  dements  of  pure  conjecture  that 
the  attempt  to  use  such  changeable  fare  was  abandoned.  The  ^  that  rapid 
transit  service  by  subway  and  elevated  is  a  higher  dass  and  necessarily  more 
expensive  method  of  travel  must  be  dearly  understood.  In  New  York  the 
original  subway  system,  taking  the  cream  of  the  city's  rapid  transit  business, 
has  been  profitable,  but  in  no  other  city  have  even  the  less  costly  elevated 
lines  been  successful  business  ventures.  In  New  York  the  necessary  recent 
additions  to  the  subway  system  have  l)een  possible  only  by  the  city  guarantee- 
ing the  interest  return  on  the  investment  and  bdng  prepared  to  pay  deficits 
out  of  annual  taxes. 

Neither  Detroit  nor  any  other  similar  city  can  hope  to  secure  the  large 
amounts  of  capital  necessary  for  the  initial  construction  period  of  a  modern 
rapid  transit  system,  and  to  pay  the  fixed  charges  on  such  expenditures  out  of 
a  fare  below  five  cents.  If  it  is  decided  that  the  present  fare  is  the  maximum 
contribution  which  the  traveling  public  is  willing  to  make  towards  the  service 
they  desire  to  dbtain,  then  it  must  be  dearly  understood  that  the  improve- 
ment in  transportation  must  be  paid  for  out  of  general  taxation,  as  we  find  it 
fmpossible  to  design  any  adequate  system  whkh  will  be  sdf-supporting 
durii^  the  devdopment  period  at  less  than  an  average  five-cent  rate  of  fare. 


m         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


But  wliat  conditions  may  arise  in  the  future  or  what  density  of  traffic  may 
be  developed  to  improve  the  earning  conditions  and  possibly  allow  of  a  reduc- 
tion of  this  fare  cannot  safely  he  predicted.  In  the  following  chapter  on  the 
inandal  plan  the  question  of  fare  is  further  discussed  from  the  point  of  view 
off  the  cost  of  the  physical  constructioii. 

In  the  conclusions  and  fccommcndations  it  is  proposed  that  this  question 
of  fare  be  placed  under  the  control  of  the  Street  Railway  Commission  and 
the  fare  based  upon  the  cost  of  Che  service. 


CHAPTER  IV 


FINANCIAL  PLAN 

General 

A  definite  financial  plan  is  qtiite  as  necessary  for  the  successful  develop- 
ment of  a  rapid  transit  system  from  the  City*s  standpoint  as  is  a  physical 
building  prog-ram. 

If  a  judicious  iuxestnicnt  of  city  money  is  to  be  secured,  a  joint  plan 
for  division  of  the  financial  burdens  between  the  City  and  the  existing  Com- 
pany must  be  devised  and  agreed  upon  in  advance.  A  i)lan  of  this  nature, 
involving  the  sale  of  large  bond  issues  by  both  City  and  Company,  must  be 
worked  out  on  lines  which  experience  has  shown  control  the  successful  sale 
of  such  securities  to  the  general  public. 

The  financial  plan  hereinafter  submitted  starts  on  January  i,  1922,  as 
being  the  date  when  the  first  rapid  transit  line  is  assumed  to  be  put  in 
operation. 

The  underlying  idea  of  the  financial  plan  is  a  unified  system  of  rapid 
transit  and  surface  lines  with  a  uniform  fare  over  the  whole  area  of  the  city 
and  free  transfers  between  rapid  transit  and  surface  lines.  The  City  will 
build  the  physical  structures  of  the  rapid  transit  lines  with  money  raised  on 

its  own  credit  or  with  its  own  cash.  The  successively  necessary  surface  line 
extensions  as  well  as  all  the  e(|uii.nient  necessary  t<^  ojicrate  b  >th  the  rapid 
transit  lines  and  the  surface  lines  are  to  be  financed  and  furnished  by  the 
Company. 

A  partnership  arrangement  is  thus  created  l)ctween  the  Citv  and  Com- 
pany, the  City  supplying  its  credit  ior  reduction  of  interest  charges,  and  the 
Company  its  plant  and  organization.  All  returns  upon  capital  are  to  be 
limited  to  bonafide  investments  and  only  at  such  rates  as  are  necessary  to 
secure  new  capital  as  needed;  the  net  divisible  surplus  to  be  equally  divided 
between  the  City  and  Company,  and  all  to  be  administered  under  complete 
Commission  regulation. 

The  establishment  of  a  comprehensive  financial  plan  necessitates  the 
forecasting  of  three  basic  items  within  the  period  covered  by  the  plan : 

1.  The  probable  gross  operating  revenue  of  the  proposed  unified 
system. 

2.  The  operating  ratio  to  be  applied  in  pro\  iding  for  the  payment 
of  operating  expenses,  maintenance,  depreciation  and  taxes. 
The  gross  operating  revenue,  less  these  payments,  will  give  the 
net  <^»erating  income. 

57 


St        KSPOKT  ON  ▲  KAPID  TBAMSIT  tYlTXIl  fOK  DBTBOIT 


3.  The  method  of  financing:  to  be  fallowed,  both  as  to  the  seciiring^ 
of  the  ncceaaary  capital  and  as  to  the  division  of  the  operating 
mrome  into  intcftst*  stnldiur  fund  and  net  divisible  siuplus,  on 
a  fair        between  tbe  City  and  the  Company. 

1.   GROSS  OPERATING  REVENUES 

The  gross  operating  revenues  of  the  City  transportation  system,  as  here 
used,  are  those  derived  from  fares  paid  by  the  passengers  carried,  no  estimate 
having  l)een  attempted  of  the  minor  sources  of  income.  It  is  evident  tliat  the 
passenger  re\  enue  is  dependent  upon  the  population  of  the  City,  Upon  ^ 
riding  habit  and  upon  the  fare. 

FiiliiuaiicHi 

The  forecasting  of  the  population  growth  of  any  city  or  c  'mmunity  is 
ciicaedinfiy  diiicalt  on  account  of  the  very  large  number  of  variable  factors 
cnterii^  into  the  problem.  There  are  no  two  cities  in  the  country,  which 
have  grown  in  an  entirely  similar  way  even  if  at  certain  time-points  their 
pofMilation  happened  tube  the  same.  For  instance,  the  popidations  of  Chicago 
in  i88o^  of  Philaddphia  in  i860  and  of  Manhattan  in  1850  were  practically 
the  same  as  tiie  population  of  Detroit  in  191a  In  the  subsequent  thirty  year 
period,  however,  Chicago  grew  from  about  553iOOO  to  about  2,185,000; 
Philadelphia  from  about  585,000  to  about  1,046^000,  and  Manhattan  from 
515,000  to  1, 164,001^  as  shown  on  diagram,  page  59.  It  is  obvious  from 
the  foregoing  that  the  case  of  every  city  is  an  individual  one  and  thU  tflfCCt 
deductions  based  upon  identity  of  size  alone,  regardless  of  period  and  of 
other  governing  conditions  have  very  little  value  in  estimating  the  future 
population  of  another  city. 

The  geographical  location,  the  importance  of  a  city  as  a  terminal  or 
transit  point,  the  business  conditions  prevailing,  the  national  policies  of  the 
country  and  a  number  of  other  considerations  have  much  greater  bearing 
upon  the  populatbn  growth  of  a  city  than  the  natural  causes,  i.  e..  the  birth 
and  death  rate  This  makes  it  impossible  to  submit  the  problem  to  a  strict 
mathematical  analysis.  An  analytical  method,  however,  has  been  worked 
out  as  a  guide  in  the  prediction  made  in  this  report.  The  details  of  this 
method  are  submitted  in  the  Appendix.  The  results  of  the  analytical  inves- 
tigation are  plotted  on  the  diagram  in  dotted  lines,  showing  an  estimated 
population  of  Detroit  in  1930  of  1,380,000;  in  1940  of  1,740,000,  and  in 
1950  of  2,170,00a 

That  part  of  the  Detroit  population  curve,  which  is  plotted  from  known 
data  ( 1910-1916)  shows  practically  the  same  slqnj  as  the  Chicago  curve  from 
1880  to  1890,  but  the  estimated  portion  of  the  Detroit  curve  presents  a 
decidedly  flatter  slope  than  the  curve  of  Chicago's  actual  growth.  This  is 
reasonable,  considering  that  the  geographical  location  of  Detroit  is  not  as 


00        RBPOBT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


favorable  as  that  of  Chicago,  which  latter  city  is  the  natural  railroad  center 
of  the  whole  country,  and  within  the  period  of  its  rapid  rate  of  growth  was 
the  eastern  outlet  of  the  then  developing  western  half  of  the  United  States. 
Under  normal  conditions  we  would  not  hesitate  to  accept  the  theoretical  curve 
as  the  ha<\<  ot  a  conservative  estimate  of  the  future  growth  of  Detroit,  but 
having  in  mind  the  inevitable  reaction  upon  industrial  conditions  of  the 
coming  termination  of  the  war  and  the  ahnost  certain  reduction  in  immigra- 
tion and  even  possible  emijjratii  n  from  this  country,  we  have  set  the  limit  of 
the  population  in  1950  considerably  lower  than  this  theoretical  cin  ve  would 
show,  namely,  at  2,000,000  people,  in  order  tn  be  thoroughly  conservative 
we  have  assumed  that  the  growth  to  this  j.ooo.ock)  li«,aire  will,  from  1920,  be 
in  equal  yearly  increments  of  33,000  people,  assuming  that  the  poiiulation  in 
1920  will  reach  the  1,000,000  mark.  This  latter  figure  was  prechcted  in  our 
previous  report  and  we  confidently  expect  it  will  be  realized. 

Ridiaig  Mabk 

The  riding  habit  is  very  conveniently  expressed  in  terms  of  revenue 
rides  per  capita  per  annum,  and  it  naturally  grows  with  the  size  and  popu- 
lation of  the  city  and  the  facilities  for  transportation.  This  growth,  however, 
is  not  in  the  same  ratio  as  the  growth  of  population  and  being  obviously 
limited  by  an  ultimate  maximum,  it  becomes  very  slaw  when  the  riding  habit 
approximates  this  limit  The  present  riding  habit  in  Detroit  is  already  ex- 
tremely liigh,  as  shown  on  diagram,  page  61,  which  gives  the  revenue  rides 
per  capita  in  several  other  cities  of  ai)i)roximately  the  same  size.  The  limit 
of  the  riding  habit  should  not  be  set  higher  than  400  rides  per  capita  in  a 
city  like  Detroit,  as  this  figure  to  our  knciwledge  has  only  been  exceeded  in 
the  Borough  of  Manhattan.  \ew  York  City,  where,  however,  the  conditions 
are  entirely  difYerent  from  those  ever  to  l)e  expected  in  Detroit  on  account 
of  the  very  large  subttrbs  and  cities  in  the  immediate  vicinity  of  Manhattan. 
In  order  to  be  conservative  in  our  estimate  the  increment  in  the  revenue  rides 
per  capita  has  been  assumed  to  be  uniform  from  1920,  namely,  one  per  annum. 

Pate 

In  the  preparation  of  this  report  it  has  been  necessary  to  work  out  in 
full  detail  a  large  number  of  financial  plans  in  which  varying  rates  of  fare, 
interest  charges,  methods  of  participation  in  the  financing  by  the  City  and 
Company,  and  different  standards  of  service  have  been  assumed.  In  this 
Report  only  one  of  these  plans  has  been  shown  in  detail  and  has  been  selected 
as  securing  most  nearly  a  first  class  service  to  the  public  at  lowest  cost 

In  order  to  make  possible  the  financing  of  a  rapid  transit  system,  such 
as  we  believe  Greater  Detroit  will  some  day  demand,  it  has  been  necessary  to 
utilize  City  credit  as  now  pennitted  by  charter.    Even  with  tliis  financial 


^£mmr  moa  cap/ta 
ar  y£Am  m  lowoas  c/r/£s 


 1 

£S* 

/ 

/ 

 I 

\  

\ 

\ 

4  . 

/ 

\ 
1 

 L 

\ 

\  I 

V 

V 

/ 

; 
1 

/ 

1 

/ 

/  J 

/ 

TV 

J- 

4 

7 

1 

1 

1 

1 

• 

390 


325 


279 


223 


200 


173 


1800 «  '02' 


04 


«1 


'ft 


mmm  on  a  siynD  tiamsit  mmmm  wim  dbtboit 


help,  a  uniform  fare  for  the  whole  city,  with  free  transfers  between  rapid 
transit  and  surface  lines  can  nnly  he  maintained  hy  an  average  charge  of 
five  cents  per  revenue  passenger  carried.  The  statement  that  a  five  cent  fare 
throughout  the  City  is  necessary  will  be  better  understood  after  a  perusal  of 
the  subsequent  discussion  in  this  chapter  covering  rate  of  return  on  the 
iravestroent,  the  necessary  ratio  between  gross  operating  revenues,  capitaliza- 
tion, etc.  The  obvious  necessity  for  this  raising  of  the  present  rate  of  fare  may 
be  readily  seen  by  comparing  the  cost  of  the  existing  type  of  transportation 
system  with  that  which  is  proposed.  Taking  the  same  length  of  track, 
namely,  from  the  river  straight  out  Woodward  avenue  to  Manchester  avenuei 
the  iolidwing  round  figures  may  be  used  lor  comparison : 


« 

Woodimd  Avc< 

Miwcnicuuii 
Cent 

Annual  Interest 
Chaifes  at 
8  per  cent 

2  IWk  Stmt  Car  Line   . 

2  Track  Elevated  Line  ,  , 

j  2  Track  Subway  Line  

6,<MTl»,00<» 

$37,,-)<)0 

It  will  be  seen,  therefore,  that  a  two-track  elevated  system  of  the  im- 
proved type  discussed  in  this  report  would  cost  eight  (8)  times  and  the 
subway  twcnty^four  (24)  times  as  much  as  the  existing  surface  car  line.  It 
must  be  remembered,  furthermore,  that  the  fiiied  diarges  on  tiiis  new  mvest- 
meut  are  an  additional  burden  over  and  above  that  carried  by  the  existing 
system,  for  we  are  here  discussing  a  unified  transportatkm  system, 
transit  and  surface,  which  shall  be  self-siqiporting.  Assunm^  that  the 
present  City  surface  line  system  represents  an  investment  of  $30,000,000  it  h 
obvious  that  a  Woodward  avenue  subway  would  increase  the  fixed  charges 
50  per  cent  on  the  combined  system.  The  addition  of  the  first  crosstown 
rapid  transit  line,  together  with  the  necessary  extensions  of  surface  lines  and 
rapid  transit  and  surface  line  equipment,  as  proposed  herein,  would  more 
than  double  the  fixed  diarges. 


CwpMiww  <if  Com  and  Pixed  OMrfea  cm  Tfunait  SjrMma  Without 

and  With  Ibipid  Traoait 


Item 

System 

Interest  at 
ft  per  cent 

A 

Fmnuit  D.  U.  R.  dty  sinlMe  Sn 

m  aad  equipment 

B 

Item  A,  with  Woodwatd  mm 

MM'  flvbmiy  and 

elevated,  and  etpipnmit  ,  . 

C 

Item  B,  with  and  east  and  i 

PHt  snlNNiy  and 

devatedf  and  equipment  .  . 

4,()8(VM> 

B 

Item  C,  willi  MitfMt  Usie  ateM 

mas  to  fMilitatc 

•1  ■■■■Itll  ■  OCCWWBS^MI  hMMII 

imtAwmfamUam 

« 

4jmm 

FINANCIAL  PLAN 


•3 


The  City  lines  of  the  existing  D.  U..  R.  sjrstem  under  their  present  rate 
of  fare  (six,  seven  and  eight  tickets  for  25  cents)  do  not  produce  a  revenue 
sufficient  to  pay  more  than  a  very  moderate  return  on  the  foregoing  valuation 
of  $30,000,000  even  with  the  heavily  loaded  street  car  service,  as  at  present 
given.  The  possibility  of  maintaining  the  present  rate  of  fare  is  shown  to 
be  due  to  the  constantly  increasing  numl>er  of  total  passengers  per  car  mile 
with  an  equally  steady  falling  off  in  the  speed  on  practically  every  line  in  the 
City,  as  siiown  by  the  operating  statistics  of  this  system  on  page  64  and 
graphically  on  diagram,  page  65. 

An  exhaustive  analysis  of  the  situation  in  other  cities  proves  the  futility 
of  undertaking  the  introduction  of  a  rapid  transit  system  in  Detroit  that 
can  be  financed  even  with  City  credit  at  an  average  fare  of  less  than  five 
cents  per  revenue  passenger.  Practically  all  the  street  railway  systems  east 
of  the  Mississippi  river  are  to-day  petitioning  their  respective  Public  Service 
Commissions  for  an  increase  in  f^re  or  other  financial  rdief  and  this  in  spite 
of  the  fact  that  they  are  ahpeady  receiving  five  cents  per  revenue  passenger 
and  on  many  of  these  railways  the  transfer  privileges  are  not  at  all  comparable 
with  the  almost  universal  transfer  sysltfm  in  Detroit 

A  study  of  the  statistics  of  these  roads  shows  that  many  of  them  have 
been  mnAer  oommissiott  oontrd  in  both  operation  and  finance  for  a  consider- 
able period  of  years.  Some  of  them,  like  Boston,  have  issued  their  securities 
with  the  aiq)roval  of  their  respective  boards  of  control  during  their  entire 
corporate  existence.  With-  companies  so  constituted,  the  inference  that  their 
present  financial  embarrassment  is  due  to  excessive  capitalization  is,  of  course, 
removed.  A  further  study  of  their  statistics  indicates  that  their  present  con- 
dition became  acute  prior  to  the  year  19 17.  The  lack  of  adequate  revenue 
dated  back  of  the  tremendous  rise  in  wages  and  cost  of  materials,  which  has 
so  seriously  increased  operating  expenses  during  1917.  This  fact  discourages 
the  hope  that  the  difficulty  is  only  temporary. 

In  view  of  these  facts,  and  of  the  arguments  set  forth  in  detail  in  the 
preceding  chapter  of  this  report,  in  order  to  support  a  sound  and  conservative 
estimate  of  constructicm  and  operating  costs,  it  has  been  considered  necessary 
to  establish  an  average  revenue  passenger  fare  of  five  cents  as  the  basis  for  the 
financial  discussicm.  That  it  may  be  possiUe  to  reducx  this  fore  under  greatly 
improved  conditions  after  the  war,  or  on  the  otiier  hand  that  oondi- 

tiotts  might  require  even  a  higher  fare,  leads  to  the  recommendation  that  tins 
question  of  Ian  should  be  made  subject  to  revtskm  under  suitable  control  by 
die  BoBfd  of  Street  Railway  CommiMtoners. 

The  gross  operating  revenue  for  Detroit's  improved  unified  system 
therefore,  has  been  figured  on  the  basis  of  a  population  of  1,000,000  in  1920, 
increani^  by  equal  annual  increments  to  2,000,000  in  1950;  oa  the  basis  of 
370  revenue  rides  per  capita  in  1920,  increasing  by  increments  of  one  per 


Average 

Car 
MUes 

per 
Hour 

f% 

Total 
Pass, 
per  Car 
Mile 

««tft^rC    'KiCKaS  «5a£d*4 

Brush 

i  Car 
Miles 
per 
j  Hour 

Total 
Pass. 

Miles 

nm^  ^^^^  ^^^^^ 

tH  ^  ^  ^ 

Hamilton 

Car 
Miles 

Der 
Hour 

Total 
Pass, 
per  Car 
MUe 

Crosstown 

Car 
Miles 

per 
Hour 

^1       f"!                  f"HI  |m4 

Total 
Pass, 
per  Car 
Mile 

^^^^  ^^^^^ 

IF'W 

Fort 

Car 
Miles 

per 
Hour 

Total 
Pass, 
per  Car 
Mile 

5.2« 

6.77 
5.80 

5.8(5 
6.28 
6.73 
7.19 

7.82 
8.77 
9.17 
9.94 
10.35 

Jefferson 

Car 
Miles 

per 
Hour 

^jjjjg   ^^^^  aioiaSaSaS 

Total 
Pass, 
per  Car 
Mile 

Michigan 

Car 
Miles 

per 
Hour 

Total 
Pass, 
per  Car 
Mile 

•    1^          t>:  ad  ad    ss  ae  c5  i-J  .4 

1 

Car  1 
Miles 

per 
Hour 

§8.^S  SiSS^  gS$8S 

SSaS    .^:S^"S'  *«!^o5«!«S 

Total 
Pass, 
per  Car 
Mile 

6.72 
7.07 
7.32 

7  Oil 

7.50 
7.(57 
7.86 

7.91 
8.64 
9.92 
10.35 
10.05 

«  ear 

64 


12 


Cj^/f  AMIS  MOR 


£  - 

ronu. 

TkrGum 

fi 


I 

3 

§ 

! 


i 


65 


Ji!!iulililiJ:!!i;:::i^:'''':::l;;ilrbj!!|,'tlSj^ 


••         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DSTROIT 

aimiiiii  lo  400  revenue  rides  per  capita  in  1950  and  on  tlie  basis  of  an  average 
fare  of  five  cents  per  revenue  passenger.  Considering  the  high  wages 
earned  in  the  industries  of  Detroit,  and  the  improved  service  rendered  to  the 
pMWic  by  the  unified  traction  system,  it  is  believed  that  the  adverse  inlluencr 
Of  the  change  to  a  higher  fare  upon  the  riding  habit  will  be  quickly  over- 
come. The  conservative  increase  assumed  in  rides  per  capita  should  make 
these  estimates  of  gross  operating  revenue  safe 

2.  OPERATING  RATIO 

By  operating  ratio  is  meant  the  per  cent  of  the  gross  operating  revenues, 
which  It  is  necessary  to  expend  to  operate  the  system,  L  e,  all  labor,  power 
and  general  expense,  expenditures  for  labor  and  material  to  maintain  the 
property  m  an  eflkient  condition,  the  amount  necessary  to  provide  for  depre- 
ciation, and  the  payment  of  taxes,  which  the  system  has  to  bear.  It  is  evident 
that  the  cost  of  all  these  items  is  not  dependent  on  the  rate  of  fare,  but  is 
mandy  dependent  upon  the  grade  of  service  rendered,  upon  the  cost  of  labor 
and  materials,  and  upon  the  adequacy  of  the  provisioas  made  for  mamtaining 
and  renewing  the  property. 

In  a  computation  covering  a  period  of  thirty  years  and  with  the  initial 
penod  seriously  affected  by  the  present  war  conditions  it  is  obvious  that  no 
single  uniform  operating  cost  can  be  expected  to  be  maintained  for  the 
eniare  period  It  is,  however,  absolutely  necessary  in  working  out  the  finan- 
cial plan,  to  assume  an  operating  ratio,  which  will  represent  a  safe,  con- 
aervative  average  of  the  probable  actual  cost  of  operation. 

Statistics  of  existing  rapid  transit  (elevated  and  subway)  systems  show 
«4iat  their  operating  ratio  is  considerably  lower  than  that  of  street  car  lines 
The  addition,  therefore,  of  rapid  transit  lines  to  a  city  transportation  system 
would  naturally  decrease  the  average  c^ienting  ratio  of  the  system.  On  the 
other  hand,  the  past  few  years  and  particuiariy  the  last  year,  have  shown  a 
rapid  increast  ip  the  cost  of  operation  of  practically  ail  ^eetric  railways  in 
the  country.  In  the  eastern  district  of  the  United  States^  aamdy  nortii  of 
the  Ohio  and  east  of  the  Mississippi,  the  first  six  mondis  of  the  year  1017 
showed  an  average  operating  ratio  of  67.89  as  against  63.67  for  the  same 
period  of  1916,  an  increase  of  6.6  per  cent 

The  foregoing  figures  are  here  introduced  not  to  ^low  the  numerical 
amount^  but  to  show  the  relative  increase  from  1916  tO  1917.  The  companies 
involved,  or  many  of  them,  are  quite  different  in  character  from  the  Detroit 
City  system.  The  Boston  Elevated  for  the  year  19 16  showed  an  operatinir 
ntio  of  70  per  cent  for  its  combined  system  of  surface,  elevated  and  subway 
iMies.  The  operating  ratio  of  the  Brooklyn  Rapid  Transit  system  was  64  8 
per  cent  m  1917.  As  a  safe  average  for  the  period  of  1922-1932  in  the 
propoaed  combined  Detroit  system  and  in  order  to  provide  a  thoroughly 


FINANCIAL  PLAN 


67 


first  class  service  and  adequate  maintenance  and  depreciation,  we  have  used 
in  the  following  tables  a  ratio  of  70  per  cent  for  the  operating  expenses. 
Hiis  figure,  it  is  estimated,  will  provide  18  per  cent  of  the  gross  operating 
revenues  for  maintenance  and  dqireciaticm.  Aftn-  a  period  of  ten  years  a 
further  d^redaticMi  charge  of  one  per  cent  and  iiuneasing  to  two  per  cent  after 
another  five  years  has  been  added,  resulting  ultimatdy  in  a  total  atlowanoe  of 
20  per  cent  for  maintenance  and  depredation,  and  in  an  (grating  ratio  of 
71  and  72  per  cent  respectively. 

3.   METHOD  OF  FINANCING 
City  vs.  CoQ^wny  Financing 

Financial  pSaaa  for  an  independent  rapid  transit  syston  on  a  competitive 
basis  show  sudi  poor  earnings  as  to  make  the  financing  of  the  system  im- 
possible by  a  company,  and  a  heavily  loosing  venture  if  attempted  by  the  City. 

A  plan  for  the  financing  of  a  unified  system,  in  which  all  capital  is  to  be 
supplied  by  a  company,  results  in  having  to  obtain  the  capital  on  terms  which 
will  not  leave  net  income  sufficient  to  make  the  securities  salable  on  the  general 
market.  This  is  due  to  the  bad  opinion  of  the  public  as  to  city  transportation 
systems,  which  are  not  backed  by  city  guarantees  or  city  credit.  Whatever  may 
be  said  for  or  against  the  logic  of  this  position  of  the  public  and  the  underlying 
causes,  the  fact  remains  that  new  Ixmds  issued  for  the  construction  of  street 
railway  and  rapid  transit  systems  in  such  amounts  as  here  contemplated, 
would  be  practically  unsalable  even  under  normal  business  conditions  if  they 
were  based  solely  on  the  credit  and  estimated  future  earnings  of  the  system 
ttsdf. 

Thit  idlemative  of  munictpat  ownership  by  purchase  of  the  existiiig 
surface  iioes  and  city  financing  of  tint  whole  system  is  in^ractical  in  Detroit 
due  to  the  statutory  limitations  on  the  amount,  which  can  be  raised  within 
the  two  per  cent  limit  of  the  assessable  value  of  the  real  and  personal  prop- 
erty in  the  City.  The  sum  thus  available  will  not  purchase  the  existing  prop- 
erty and  build  n^d  transit  lines  m  addition. 

The  street  railway  bonds  as  provided  for  in  Section  10  of  the  Statute 
are  no  more  salable  than  those  just  mentioned  in  the  case  of  oxiqKUiy  owner- 
ship, as  they  are  not  backed  by  City  credit 

City  and  Company  Partnership 

By  participation  of  both  Company  and  City  in  the  financing,  a  situatinn 
can  be  created  whereby  the  lower  interest  rates  obtainable  by  the  City  on  its 
own  bonds,  and  the  protecting  of  the  principal  and  interest  on  the  Company's 
securities  by  the  reinvestment  of  the  City's  profits  in  the  property,  will 
strengthen  the  credit  of  the  whole  enterprise  sufficiently  to  make  all  ^ 
securities  maflcetahle  and  the  interest  charges  a  minimum. 


fi         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


CHgr  To  BuiM  and  Own  Rapid  Transit  Lines 

It  is  assumed  that  the  Detroit  L'nitetl  Railway  will  segrejjate  its  holdings 
of  street  railway  properties  within  the  City  of  Detroit  and  that  the  ownership 
of  those  properties  can  be  transferred  to  a  new  company  to  be  formed,  called 
the  Cmofimj,  in  this  Report,  which  will  operate  the  whole  system  under  the 
supervisioii  of  and  according  to  the  rules  set  down  by  the  Street  Railway 
Commissioners* 

Toward  such  a  partnership,  the  city  will  contribute  the  funtls  necessary 
to  build  the  rapid  transit  lines,  whose  cost  is  kept  within  the  legal  two  per 
cent  delit  linnt,  and  which  structures  thus  built  it  is  to  own.  Subserpient 
rapid  transit  construction  is  to  be  financed  by  the  reinvestment  in  the  new 
stractofcs  of  the  City's  share  in  the  surplus  from  operation.  These  accumu- 
lated smns  win  supply  the  bulk  of  the  new  funds  for  rapid  transit  construction 
and  Iccep  the  bond  issue  well  withhi  the  two  per  cent  debt  limit. 

Oompmy  To  Openitc  %item  Under  Terminable  License 

The  City  will  grant  a  license  to  the  new  Company  for  the  joint  oi)era- 
tion  of  the  entire  system  until  terminated  by  default  by  the  Company  or  by 
the  porchase  of  the  property  by  the  City. 

On  this  important  point  the  following  is  rpioted  from  the  Chicago  Trac- 
tion and  Subway  Commission's  Report  of  1916: 

**It  is  an  axiom  of  finance  that  the  greater  the  risk  associated 
with  an  investment,  the  greater  will  be  the  return  demanded  by  the 
nffestor.  It  is  directly  to  the  City's  interest  to  make  the  security 
of  the  investment  unquestionable,  as  the  Corporation  receives  on 
new  capital  obligations  only  its  actual  payments  for  interest  on  these 
obligations.  .\ny  grants  to  the  Corporation,  which  add  to  the 
security  or  the  stability  of  the  investment  will  tend  to  reduce  the 
cost  of  new  capital  to  the  partnership,  which  will  directly  increase 
the  divisible  net  receipts,  of  whkh  the  City  gets  55  per  cent." 

"One  of  the  most  important  factors  contributing  to  the  security 
of  the^  investment  is  the  form  of  the  franchise.  It  is  principally 
for  this  reason  that  the  Commissioners  favor  a  terminable  mnt 
Such  a  form  of  franchise  relieves  the  investment  of  the  uncertainties 
and  embarrassments  usually  present  during  the  later  years  of  the 
life  of  one  granted  for  a  fixed  term.  A  franchise  settlement  jiiay, 
and  freipentty  does,  drag  aloi^  for  several  years,  and  as  long  as 
tlie  rjuestion  is  unsettled  there  is  present  in  the  mind  of  the  investor 
the  fear  that  the  conditions  which  may  be  impo.sed  on  the  Corpora- 
tion upon  settlement,  will  be  such  as  to  make  the  Corporation's  in- 
come so  small  as  to  endanger  his  own  principal  and  income  This 
makes  the  refundmg  of  old  or  the  issuing  of  new  obligations  more 
expensive,  and  as  this  cost,  if  any,  under  the  Commissioner's  plan, 


FINANCIAL  PLAN 


69 


is  added  to  the  jnirchase  price  of  the  property  on  which  interest  must 
be  paid  before  arriving  at  the  divisible  net  receipts,  the  City  suffers 
directly  as  a  result  of  making  financing  difficult." 

CmopMOy  To  Siipfdy  and  Finance  Surface  Lines  and  Eactensioiis  and  AH 

The  Company  will  contribute  the  existii^  City  street  car  system  at  a 
reasonable  valuation  as  of  the  date  of  consoKdation,  and  will  furnish  the 
capital  for  all  ^  equipment  of  the  rapid  transit  and  surface  lines  and  for 
all  extensions  of  the  street  car  system.  The  valuation  assumed  for  the  street 
railway  system  in  i^i/  is  $30^000,000. 

Only  Actual  Interest  Rate  on  City  and  Company  Funds  Allowed 

UpcHi  the  capital  invested  by  each  partner  the>-  are  to  receive  from  the 
revenues  the  rate  of  interest  which  they  respectively  must  pay  to  secure  their 
share  of  the  required  capital.  In  calculating  the  financial  table?  it  w^as  assumed, 
that  the  interest  rate  upon  the  capital  invested  by  the  Company  will  be  not  over 
six  per  cent.  All  securities  are  to  be  issued  only  upon  approval  by  the  Street 
Railway  Commissioners  as  to  amount,  price  and  rate  of  interest. 

A  sinking  fund  to  retire  the  lunuls  of  both  City  and  Company  in  sixty 
vears  is  also  provided.  The  e(|uity  in  the  property,  represented  by  the  bonds 
retired  through  the  operation  of  the  sinking  fund,  is  to  revert  to  the  City. 

In  working  out  this  financial  plan  the  complete  refinancing  of  the  entire 
value  set  ui)on  the  existing  surface  line  properties  within  the  City  has  been 
assumed,  and  the  cost  of  this  refinancing  has  lieen  included  in  the  estimates. 
This  does  not  mean  that  such  action,  with  its  consequent  added  interest  charge, 
will  necessarily  have  to  be  incurred.  It  is  quite  reasonable  to  hope,  that,  when 
actual  consolidation  is  effected,  a  more  advantageous  handling  of  this  situ- 
ation can  be  worked  out  through  an  exchange  of  securities.  In  the  computa- 
tion of  the  tables,  however,  the  radical  assumption  of  complete  refinancing  was 
deemed  advisable  in  order  to  prove  beyond  question  that  the  building  program 
can  be  carried  oat  and  the  proposed  unified  traction  system  made  self-support- 
ing with  a  reasonable  rate  of  fare.  The  effort  throughout  this  plan  has  been 
to  assume  that  the  least  favorable  conditions  may  exist  after  the  war.  and  it 
should  not  ,be  inferred,  that  the  exact  figures  herein  usetl  are  intended  as  an 
offer  for  the  existing  properties. 

Similarly,  this  plan  provides  for  the  retirement  of  the  City's  traction 
bonds  through  the  action  of  the  sinking  fund.  It  is  recognized,  that  a  more 
favorable  showing  might  be  matle  by  retiring  the  higher  rate  junior  securities 
of  the  Com])any.  This  has  not  been  done  in  the  working  out  of  the  tables,  in 
order  to  kee))  the  bonds  issued  by  the  City  for  traction  purposes  below  the  two 
per  cent  legal  limit  with  a  sufficient  margin,  so  as  not  to  impair  the  bijrrow- 


70         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


ing  rapacity  of  the  City,  should  later  developments  require  a  more  extensive 
buildiiig:  progfam.  In  this  as  in  other  features  not  especially  noted,  where 
a  dioice  cadsted,  the  most  burdensome  condition  has  been  assumed,  but  not 
with  the  intention  of  advocating  that  such  a  procedure  should  necessarily  be 
followed.  If  the  Qty  Charter  should  he  amended  as  in  New  York,  so  that 
€%  bonds  on  public  utilities  which  are  sdf&supporting  could  be  exduded  from 
the  debt  limit,  a  much  more  favorable  condition  may  be  created 

Ntt  Diviatble  Smpliia  Sliafed  Eqiialfy  by  City  and  Coa^my 

The  act  income  of  the  system,  after  setting  aside  the  mterest  charges  and 
the  Sinking  Fund,  is  to  be  divided  equally  between  the  City  and  the  Com- 
pany, provided  the  Company's  income  does  not  exceed  eight  per  cent  on  its 
investment.  The  City's  share  m  the  net  divisible  surplus  is  to  be  subject  to 
the  payment  of  an  agreed  minhnum  to  the  Company. 

Purchase  Pkke  to  City 

A  purchase  price  is  to  be  set  up  for  the  entire  system  whkii  shall  consist 
of  the  City's  outstanding  securities,  phis  the  value  of  the  surface  car  lines 
at  the  time  of  the  consolidation,  plus  such  actual  additions  as  are  made  from 
time  to  time  by  the  Company,  reckoned  at  par  vahic  of  the  securities  ^iproved 
by  the  CommissicMiers  to  cover  these  last  two  items,  less  those  retired  through 
the  sinking  fund.  Common  stock  issued  by  the  Company  is  to  have  no  par 
value  and  is  not  to  be  included  in  the  purchase  price.  At  the  purchase  price 
thus  fixed  less  the  City's  outstanding  traction  bonds,  the  City  may  on  due 
notice  take  over  the  property  at  any  time. 

Owncc^  of  Property  Acquired  by  City  Prom  Its  Share  in  Surplus 

It  will  be  seen  that  in  this  manner  the  City  will  steadily  acquire  an 
increasing  share  in  the  ownership  of  the  whole  property,  and  by  1950  could 
purchase,  free  of  all  debt,  the  complete  system  costing  $156,134,000,  by  the 
payment  of  $75,435,000,  or  by  about  1970  the  property  would  revert  to  the 
City  without  cost.  During  all  of  this  period  the  City  would  have  received  a 
return  upon  its  money  invested,  including  the  proceeds  of  bonds  and  its  share 
of  the  surplus  of  from  6.78  to  20.90  per  cent,  while  the  Company  is  to  be 
limited  by  agreement  to  a  maximum  return  of  eight  per  cent,  all  excess  over 
eight  per  cent  going  to  the  City. 

By  this  combination  of  City  and  Company  credit  and  careful  regulation 
of  all  expenditures  and  of  security  issues,  a  good  service  can  be  assured  to  the 
pdllic  at  the  lowest  cost  and  safety  of  principal  and  a  fair  return  to  the  invest- 
ing public  Wi^t  this  the  burden  of  obtaining  increased  facilities  must 
fall  directly  tqpon  the  taaqtayers  through  increase  of  the  annual  City  tax  rates. 


PIliANCIAL  PLAN 


71 


DESCRIPTION  OF  FINANCIAL  TABLES 

The  f<^owing  tables  have  been  prepared  to  show  clearly  what  would  be 
the  actual  result  of  carrying  out  the  jilans  described  in  the  foregoing  portion 
of  this  report  Of^site  each  table  has  been  placed  a  brief  explanation  of 
each  column  of  figures,  indicating  the  manner  in  which  they  have  been 
computed. 

It  should  be  noted  that  the  columns  of  figures  have  been  grouped  under 
genoral  headings  as  follows : 

Expenditures  for  Investment  in  Road  and  Equipment — ^Page  77. 

In  columns  Nos.  i  to  5,  both  inclusive,  there  is  given  the  total  cost,  each 
year,  of  building  rapid  transit  lines  by  the  City:  and  the  cost  of  building  sur- 
face lines  and  of  supplying  all  equipment  for  Ixjth  surface  and  rapid  transit 
lines  by  the  Company.  These  columns  show  a  very  equal  division  of  invest- 
ment made  by  the  City  and  the  Company  after  the  first  two  initial  periods. 
Thus  in  1922  the  City  expends  $11,700,000,  which  investment  has  grown  by 
1950  to  $68,050,000.  The  Company  commencing  with  an  investment  of 
$42,680,000  in  1922,  has  increased  its  share  of  the  investment  by  1950  to 
$88,084,000.  This  results  in  a  total  of  $156,134,000,  by  1950,  as  the  amount 
necessity  for  a  higher  fore  than  five  cents  to  si^iport  the  system. 

The  sufficiency  of  the  tranqxMrtalion  facilities  tiius  fnovided,  and  its 
reascmaUeness  when  compared  with  the  devdopment  of  other  rapid  transit 
systons  is  shown  by  cdumn  6.  Th^  %ttres  (oolunm  6)  indicate  that 
starting  in  1922  with  an  mvestment  of  $2.34  for  eadi  $1.00  of  gross  operai> 
ing  revenue,  the  system  has  grown  by  1945  to  a  size  requiring  an  investment 
of  $4.20  per  $1.00  of  gross  operating  revenue.  A  lowo*  investment  ratio 
would  indicate  insufficient  facilities  to  earn  the  estimated  revenue  while  a 
ratio  of  over  $5.00  invested  per  $1.00  of  gross  receipts  would  indicate  the 
necessity  for  a  higher  fare  than  five  cents  to  suf^rt  the  sy^iem. 

Capitalization — ^Page  79. 

Columns  7  to  15  under  the  general  heading  Capitalization  indicate  the 
sources  frcnn  which  the  funds  for  construction  and  equipment  are  assumed  to 
be  derived. 

The  issue  of  City  bonds  shown  in  column  7.  occurs  only  in  1922,  1926 
and  1932.  The  City's  outstanding  bonds  (column  8)  are  seen  in  1922  to  be 
$11,700,000,  increasing  to  $18,111,000  in  1926,  decreasing  again  to  only 
$10,787,000  by  1950,  the  decrease  being  due  to  the  operation  of  the  sinking 
fund. 

Columns  9  and  10  show  the  inve^ment  by  the  City  in  rapid  transit 
structures,  subways  and  devated,  from  funds  derived  in  accumulating  its 


ft        RSPORT  ON  A  RAPID  TRANSIT  SYSTSM  FOR  DETROIT 


sllire  of  the  net  divisible  surplus.  The  total  capital  thus  invested  by  the  City 
aunomls  in  1950  to  $48,833,000. 

The  Company  starting  with  a  bond  issue  of  $33,000,000  in  1922,  plus 
l9,68pyOOO  in  some  junior  form  of  security,  has  outstanding  in  1950  a  par 
value  of  $64,647,000  in  securities.  ( Columns  1 1  to  1 5. ) 

The  right  hand  column  (17)  on  this  same  table,  placed  here  for  con- 
venience of  fcference  and  comparison  with  the  idated  figures  of  capitaliza- 
tion, indicates  the  purchase  price  at  which  the  City  can  acquire  the  pr«^)erty 
in  any  year  under  the  proposed  fgreement,  free  of  all  inddMcdncss. 

By  comparing  cohmins  5  and  17  it  will  lie  seen  that  in  1950  the  Gty 
could  acquifc,  free  of  debt,  the  unified  system  upon  which  had  been  eiqiended 
$78,882,000,  for  the  sum  of  $65,561,000.  In  1940  the  unified  system  would 
represent  an  investment  of  $1 14^58,000,  which  the  City  could  take  over,  free 
of  debt,  for  $71,760,000,  in  cash.  By  1950  the  amount  invested  in  the  system 
would  be  $156,134,000,  which  system  the  City  would  have  the  right  to  take 
over  free  of  debt  for  $75.435.ooo,  in  cash. 

Column  16  represents  the  equity  in  the  property  which  is  being  giidaalty 
acquired  by  the  City  and  which  reduces  the  total  investment,  column  5,  to  the 
purchase  price,  column  17.  This  acquisition  is  effected  partly  through  the 
reinvestment  of  the  City's  share  of  the  net  divisible  surplus  and  partly  through 
the  operation  of  the  sinking  fund,  the  equity  corresponding  to  the  retired 
bonds  reverting  automatically  to  the  City.  The  cumulative  total  of  all  the 
bonds  which  are  retired  can  be  fountl  for  each  year  by  deducting  column  10 
from  cohnnn  i4 

In  a  subsequent  taWc,  column  36,  will  be  found  a  traction  fund  repre- 
senting the  City's  uninvested  earnings  which  have  been  accumulated  over  and 
above  those  required  for  the  building  program  here  assumed.  By  1950  thi? 
fund  would  amount  to  $25,642,000,  which  would  enable  the  Qty  to  pur- 
chase the  complete  traction  system,  which  cost  over  $156,000,000,  by  the 
investment  of  $50,000^000,  additional  cash. 

Opttntiag  Sutistics,  Gross  Operating  Revenue,  Operating  Income'^ 
PligeSI. 

Columns  Nos.  18  to  20,  show  the  basis  for  an  estimated  gross  operating 
revenue  (column  21)  in  1922  of  ?i9,85o.ooo.  increasing  to  $40,000,000,  by 
1950.  The  operating  income,  column  22,  shows  an  increase  from  $5,955,000, 
in  1922  to  f  1 1,200,000  in  1950. 

iMeitai  and  Siafciiig  81 

The  first  four  columns,  23  to  26  inclusive,  show  the  payments  for  inter- 
est on  the  various  securities  issued  against  construction  and  equipment  by 
both  the  Gty  and  the  Company,  all  under  the  reguhitions  of  the  Street  Rail- 


• 


FINANCIAL  PLAN  73 

way  Commisstcm.  Column  27  shows  the  amounts  devoted  each  year  to  the 
retirement  of  the  outstanding  bonds  through  the  action  of  the  sinking  fund. 
Cohmm  28  shows  that  the  total  deductions  from  operating  income  applicable 
to  these  purposes,  which  in  1922  amount  to  $3,561,000,  will  increase  to  an 
annual  amount  of  $7,887,000  at  the  end  of  tlie  period. 

Distribution  of  Net  Divisible  Surplus— Page  85. 

The  table  consisting  of  columns  29  to  35  indicates  tlie  distribution  of  the 
net  divisible  surplus  between  the  Company  and  the  City  and  the  rates  of  return, 
which  each  will  receive  upon  its  investment  from  year  to  year.  The  last 
column,  36,  shows  the  traction  fund  or  the  Gty's  uninvested  earnings  pre- 
viously referred  to.  Column  32  shows  that  the  Company  receives  a  maximum 
ietum  of  eight  per  cmt  and  a  minimtun  of  6.94  per  cent  throughout  the  period 
under  the  conditioas  here  assmned,  it  being  contemplated  that  some  sudi  limits 
wocdd  be  maintained  under  iSbe  pcovtskxis  of  the  agreement  The  City  (cd- 
umn  35),  during  the  same  period,  has  received  returns  ranging  from  20.9 
per  eoA  to  6.78  per  cent  with  a  general  average  above  eight  per  cent  No 
attempt  has  been  made,  in  working  out  the  financial  plan,  to  adjust  any  of 
^  conditions  to  vary  these  percentages.  The  obviously  abnormal  rate  of 
return  to  the  City  in  the  early  periods  is  due  to  its  receiving  one-half  or  more 
of  the  net  divisible  surplus  at  a  time  when  its  investment  is  relatively  small. 

It  must  also  be  noted  that  while  the  Company's  rate  of  return,  column  32, 
actually  varies  between  seven  and  eight  per  cent,  the  City's  return,  shown  in 
column  35,  does  not  include  an  allowance  such  as  the  City  receives  by  the 
annual  additions  to  its  ownership  of  the  property  through  the  working  of  the 
sinking  fund.  It  has  been  assumed  that  this  progressive  acquisition  of  the 
ownership  of  the  property  by  the  City  was  a  fair  return  for  granting  the  Com- 
pany the  right  to  operate  the  system  under  die  conditions  named  and  for  the 
definite  assistance  given  by  the  City  throng  its  contribution  in  ^  finatiditg 
and  the  pledging  of  its  credit 

It  sAichM  be  observed  that  1^  this  process  of  joint  financing  fhfongi  m 
partnefshtp  between  the  Ci^  and  the  Operating  Conq^y,  together  with  a 
practicidly  equal  distribution  of  the  net  surplus,  it  is  possible  to  finance  and 
operate  litt  unified  traction  system  at  a  very  reascnable  average  rate  of  fare. 
By  thus  xitttiging  to  the  best  advantage  the  elements  which  the  Company  and 
the  Chf  can  contribute,  a  joint  arrangement  is  made  supplying  adequate 
service  as  near  as  possible  at  actual  cost,  while  properly  protecting  the  general 
public  who  invest  in  the  securities  of  both  City  andjCompany. 

financial  Charts 

Accompanying  these  tables  are  three  financial  cliarts  showing  in  graph- 
ical form  the  same  facts  as  contained  in  the  tables. 


BEPORX  ON  A  SAPID  TSAMUT  MYVimm  fO«  IXITBOIT 


Chart  page  86  shows  expenditures  for  investment  in  road  and  equip- 
ment for  the  unified  system.  The  height  of  the  ordinates  above  tlie  base  Hne 
indicates  in  milHons  of  dollars  the  cost  of  the  property  at  the  dates  given  on 
the  base  line  extending  from  1922  to  1950.  The  upper  line  of  this  diagram 
shows  the  total  cost  of  the  entire  unified  system.  The  various  sources,  from 
which  these  funds  arc  derived,  is  indicated  by  the  shaded  areas,  including  the 
ciMt  of  the  original  street  car  system,  the  additions  to  the  surface  lines  and 
c^fMnent  furnished  by  the  Company,  the  rapid  transit  lines  btiUt  by  the  City 
from  the  sale  of  bonds  and  other  rapid  transit  lines  built  by  ranvestment  of 
the  Oty's  share  in  the  net  divisible  surplus. 

Chart  page  87  shows  tiie  same  facts  as  chart  page  86  except  that  the 
height  of  the  ordinates  here  indicates  the  effect  of  the  amorttzatioii  of  the 
outstanding  securities,  both  City  and  Company,  by  the  action  of  the  sinking 
fund  provisions  of  the  agreement  The  heavy  line  bounding  the  City's 
invested  earnings  represents  the  purchase  price  of  the  property  to  the  City. 
Hie  ordinates  above  the  heavy  line  and  extending  to  that  marked  "Total  Cost 
of  Unified  System"  give  the  value  of  the  equity  acquired  by  the  City. 

Chart  page  88  shows  the  disposition  of  the  gross  operating  revenue  from 
the  unified  system.  The  upper  line  extending  from  $19,850,000  to  $40,000,000, 
over  a  period  from  1922  to  1950,  indicates  by  the  height  of  the  ordinates  the 
total  gross  operating  revenue  for  each  year.  The  large  area  at  the  base  of  the 
diagram  indicates  the  operating  expenses  taken  at  from  70  to  72  per  cent  of 
the  gross  operating  revenue.  *fiie  portion  above  this  area  and  below  the 
gross  operating  revenue  is  the  operating  income,  which  is  divided  as  indicated 
between  interest  charges,  sinking  fund  and  the  share  of  the  surplus  allotted  to 
the  City  and  to  the  Company. 


FINANCIAL  TABLES 


n      mmom  m  a  sapid  transit  ststsm  fos  dbtroit 

EXPENDITURES  FOR  INVESTMENT  IN  ROAD  AND 

EQUIPMENT 

The  Date  is  Assumed  To  Be  the  First  of  January  in  Each  Year  for 
Gilciniiis  I  to  17  Indtisive  and  for  Column  36 

Cdmm  I.  The  cost  of  rapd  transit  construction  is  shown  in  column  i, 
opposite  the  date  when  the  individual  tines  are  planned  to  go- into  oper- 
ation, in  accordance  with  the  building  program  elsewhere  described. 
These  sums  include  the  cost  of  financing  and  the  interest  during  con- 
struction, and  are  supplied  by  the  City  either  by  tlie  sale  of  bonds  or  by 
the  reinvestment  of  both  its  share  in  the  net  divisible  mtfim  and  the 
interest  earned  on  same.  Under  the  conditions  assumed  in  computinff 
these  financial  tables  the  issuance  of  City  bonds  will  not  be  required  after 
the  expenditures  of  1932  are  met.  The  City's  share  in  the  net  divisible 
surplus  and  the  interest  on  the  reinvested  earnings  will  thereafter  provide 
for  the  City's  part  of  the  construction  requirements. 

Column  2.   This  column  represents  the  total  cost  of  rapid  transit  construction 
the  amounts  shown  in  each  year  being  the  cumulative  total  erf  the  sums 
shown  in  column  I. 

C^umn  3.  The  cost  of  surface  line  extensions  and  equipment  which  will  go 
into  operation  during  each  year,  and  the  cost  of  the  equipment  of  the 
rapid  transit  lines  are  shown  opposite  the  corresponding  date.  As  in 
column  I  these  amounts  include  interest  during  construction  and  the  cost 
of  financing,  the  amounts  representing  the  par  value  t>f  the  securities 
issued  by  the  Company  for  the  above  purpose,  subject  to  the  approval  of 
the  Street  Railway  Commissioners.  In  the  plan  herein  submitted  it  has 
been  assumed  that  tlie  Company  will  raise  80  per  cent  of  its  necessary 
funds  by  the  issuance  of  bonds  and  20  per  cent  by  the  sale  of  stock  or 
some  other  junior  security. 

The  amount,  $42,680,000,  shown  in  column  3  for  the  year  1922 
includes  the  estimated  cost  of  the  D.  U.  R.  surface  line  system,  as  at 
December  31,  1917,  plus  the  cost  of  the  equipment  of  the  Woodward 
avenue  subway  and  elevated,  plus  the  cost  of  construction  and  equipment 
of  surface  line  extensions  up  to  January  i,  1922.  The  amount  allowed 
for  the  value  of  the  D.  U.  R.  city  surface  line  system  is  $30,000,000  for 
the  track  and  equipment  within  the  city  limits  of  1914,  ^us  extensions 
to  December  31,  19 17. 

Column  4.    The  total  cost  of  surface  lines,  their  extensions,  and  all  equip- 
ment for  both  surface  and  rapid  transit  lines  is  shown  in  this  column 
The  amounts  represent  the  cumulative  total  of  the  amounts  shown  in 
cdumn  3. 

Column  5.   This  column  is  the  sum  of  columns  2  and  4,  showing  the  total 

cost  of  the  entire  city  traction  system,  rapid  transit  and  surface,  with 
their  complete  equipment  as  in  operation  at  the  beginning  of  each  year. 
Ctflumn  6.  This  column  shows  the  "Investment  Ratio"  for  each  year,  being 
the  ratio  of  the  total  investment  in  the  unified  system,  as  shown  in  column 
5,  to  the  gross  operating  revenue,  as  shown  in  column  21. 


FINANCIAL  PLAN 


77 


EXPENDITURES  FOR  INVESTMENT  IN  ROAD  AND  EQUIPMENT 


1982 
1933 
1934 
1936 
1998 

1937 
1988 
1989 
1940 
1941 

1942 
1943 

vm 
im 

1946 

1947 
1948 
1949 
1060 


11,200.000 

•      •      «  • 

'7,700,060 


12,000,000 


12,000,000 


36,350,000 
36,360,000 
36,350,000 
36,350,000 
44^ 


44,050,000 
44,050,000 
44,060,000 
44,050,000 
56,050,000 

56,050,000 
56,050,000 
56,050,000 
68.050,000 
68^ 


68,060,000 
68,050,000 
68,060,000 
68,060,000 


6,000.000 
812,000 
812,000 
812,000 

4tll8QyOQO 

812,000 
812,000 
812,000 
812,000 
4,986,000 

812,000 
812,(X)0 
812,000 
5.795.000 
812,000 

812,000 
812,000 
812,tXX) 
812,000 


By  City 

By  Company 

Date 

Expenditures 

for  Rapid 
Tnosit  Con- 
struction in 

Each  Build- 
ing Period 

Totallnvest- 
ment  in 
Rapid 

Transit  Con- 
structkm 

Expenditure 
for  Surface 

Lines  and  All 
Equipment 
Bsdt  Year 

Total  Invest- 
ment in 

Surface  Lines 

and  All 
Rqwptptiit 

Totallnvest- 
ment  in 
Unified 
System 

Investment 
Ratio 

Column 
Numbers 

1 

2 

3 

4 

& 

6 

1922 
1923 
1924 
1926 
1926 

$11.700,(X)() 

•  •      •  • 

•  •      •  • 

13.450,000 

$11,700,000 
11,700,000 
11,700,000 
11,700,000 
2M60,000 

$42,680,000 
812,000 
812,000 
812,000 
6M00O 

$42,«80,000 
43,492,000 
44,304,000 
46,116,000 
50,38^000 

$54,380,000 
55,192,000 
56,004,000 
66,816,000 

2.74 
2.69 
2.64 
2.59 
SJ4 

1927 
1928 
1929 
1930 
1931 

•      •      •  • 

25,160,000 

25,160,000 
26,160,000 
26,150,000 
26,160,000 

812,000 
812,000 
812,000 
812,000 
812,000 

51,196,000 

52,008,000 
62,820,000 

53,(i32,(MX> 
54,444,0a) 

76,346,000 
77,158,000 
77,970,000 
78,882,000 
79,594,000 

3.27 
3^ 
3.16 

3.11 

3.06 

60,444,000 
61,256,000 
62,068,000 
62,880,000 

68,372,000 
69,184,000 
69,996,000 
70,808,000 
75,793,000 

76,605,000 
77,41 7,CKX) 
78,229,000 
84,024,000 
84/ 


85,648,(XKt 
86,460,000 
87,272,000 
88,084,000 


96,794,000 
97,606,CK)0 
98,418,000 
99,230,000 

uiiisuyooo 

112.422,000 
113,234,000 
114,046,000 
114,858,IKX) 
131,843,000 

132,655,000 
133,467,000 
134,279,000 
152,074,000 
152,886i000 

153,698,000 
154,5 10,(KX) 
155,322,000 
166,134,000 


mmmm  m  a  bato  tbaiwit  wmmm  iob  dbtboit 


CAPITAUZATION 

Cohmm  7.  Tliis  cohmm  shows  ti»  par  value  of  the  bonds  issued  by  the 
City  at  tlie  ist  of  January  in  the  years  1903,  1996  and  1933.  Tboe 
bonds  are  assumed  to  be  issned  at  par  and  tetired  (f  etptal  anntnl  install- 
ments  dvanng  a  period  of  sixty  years. 

Co||||||Pi.  nil  colaiiliiliOiws  the  par  vahie  of  all  Gty  bonds  outstanding^ 
at  tie  beginning  of  each  year,  being  the  aimiilative  total  of  column  7,  less 
the  bonds  retired  each  year  through  the  application  of  the  sinking  fund. 

Cokam^  9.  This  column  shows  the  amounts  of  the  City's  earnings  reinvested 
ill  TOe  property  at  the  dates  shown.  These  amounts  are  derived  from  the 
Gty's  share  in  the  net  divisible  surplus  (column  33),  plus  the  interest  on 
the  reinvested  sums  (cohmm  26),  the  whok  accwnrfated  at  four  per  cent 
up  to  the  date  of  the  investment  Those  parts  of  such  aocmmilated  fmids 
which  caccced  the  capital  raqoifeiiMiits  of  the  City^  a^ 

Column  10.  This  column  shows  the  totdl  amomt  of  reinvested  earaings  hy 
the  City  and  is  the  amntlative  total  of  cohmm  9^ 

Ctfimmi  II.  The  bonds  issiied  eadi  year  by  the  Company  are  ilMmn  in  this 
cohmm,  tfie  amoont  being  figured  in  accordance  with  the  explanation 
given  for  column  3.  The  Company's  bonds  are  assumed  to  be  retired 
by  equal  annual  installments  during  a  period  of  sixty  years. 

Column  12.  This  column  is  the  cumulative  total  of  column  11,  less  tiie 
bonds  retired  each  year  through  the  application  of  the  sinking  fimd. 

CofMmn  13.  This  column  shows  the  par  value  of  the  junior  securities  issued 
by  the  Company  each  year  in  accordance  with  the  explanation  given  for 
ooramn  3* 

Cotmum  14.   This  is  the  cumulative  total  of  column  13. 

Column  15.  This  column  shows  the  Company's  total  outstanding  securities 
at  the  beginning  of  each  year,  being  the  sum  of  columns  12  and  14. 

Column  16.  This  is  the  equity  in  the  property  reverting  to  the  City,  free  of 
debt,  acquired  through  the  action  of  the  sinking  fund  and  through  the 
reinvestment  of  the  City's  share  in  the  surplus.  It  is  the  sum  of  column 
io  phis  the  omrahitive  total  of  cohnrni  37. 

Column  17.  This  column  is  the  purchase  price,  free  of  debt,  of  the  whole 
mified  system  to  the  City  at  the  b^finning  of  each  year,  being  the  sum 
of  the  iotal  then  outstanding  City  and  Company  secnriticf  (cohmm  8, 
plus  column  15).  The  swn  ol  coinmiit  16  and  17  win  mpm^  the  total 
invcttment,  oohmm  5. 


By  City 


Ottte 


Column  Numbers 


1928 

1917 
1988 
1929 
1990 
1981 

1982 
1988 
19B« 
1986 
1988 

1987 


1910 
1911 

1912 
1913 
1944 


1918 

1917 
1948 
1949 
19iO 


Bontte  liiMd  in 


111,700,000 


7.191J0I» 


Total  Bonds 
'Outttnmlnig 


$11,700,000 
11,505,000 
11,310,000 
11,115,000 
18»111,0Q9 

17,79«>,000 
17,481,000 
17,166,000 
1^61,000 
18,888,000 

16,547,0(X) 
16,227,(XK) 
16,907,000 
16,587,aX) 
16.287.000 

14,947,000 
14,627,000 
14,307,000 
13,987,000 
13.867,000 

13347,000 

13,027,000 
12,707,000 
12,387,000 
12,067.000 

11.747.000 
11.427,000 
11,107,000 
10,787,000 


Earnings  Reinvested 
in  Bidi  Period 


9 


|0h268^ 

»»•••• 
«>••«•» 

•  »*•■« 

10.874,000 

**•»•* 

w    •    w    •   «.  * 

7.700^.000 

'•«•••<« 

12;0O0u00O 


Total  Earnings 
Rctnveated 


10 


18^^ 

6,259,000 
6.269.000 
8,269.000 
6,259,000 
6,259,000 

17,133,000 
17,i:«,000 
17.133,000 
17.133,000 

Hsss^o 

24,833,000 
24,833,000 
24,833,0(X) 
24,833.000 
36,833,000 

36,833,000 
36,833,000 
36,833,000 
48,a33,000 
48333.000 

48333,000 
48,833,000 

48,833,(X)0 
48,a33,000 


VINANCIAL  PLAN 


79 


CAPITALIZATION 


By  Conqiany 

Bonds  Issued 
Eadt  Year 

lotal  Bonds 
OiitctaDdtng 

Junior  Securities 
Issued  Badb  Year 

Total  Junior  Securi- 
ties Outstanding 

Company's  Total 
Outstanding 
Securities 

Equity  Acquired  by 
City 

Purdiase  Price  to 
City 

(Cols.  8  and  15) 

11 

12 

13 

14 

16 

18 

17 

133.000,000 

133,000,000 

$9,680,000 

$9380300 

$42380,000 
42,942,000 
43.194,000 
43.436300 
48.122.000 

S.>4  380000 
64.447.000 
64304300 
54350300 
66,233300 

628,000 

628,000 
628,000 
4fimfi(30 

38,078,000 
33,146,(XX) 
33,203,000 
36306,000 

184,000 
184,000 
184,000 
1.185300 

9364,000 
10,048,0(K) 
10332,000 
11,427,000 

$745,000 
1,500,000 
2366,000 
9301.000 

828^000 
628.000 
628,000 

628,000 
628.0CX) 

36,674,000 
36,642,000 
36,600,000 
:5(>,o47,(KtO 
;i6,484,(Hi0 

184300 
184,000 
184,000 
184,000 
184,000 

11.611,000 

11.71t5,(XX) 
11,H7!MKX) 
12,16:5,0(X) 
12,347,(X»0 

48,286.000 

48,437.tX)0 
4H..57!MK)0 
4S,710,0()0 
48.831,000 

10.265,0(K) 
11.240,ftOO 
12,225.000 
12,221.000 
12327300 

(>(),08 1,000 
6.5,H1S,()(»() 
65,745,000 
65.561.000 
65387300 

4,640,000 
628,000 
628,000 
628,000 

40.422.ai0 
40,271300 
40.110,000 
39,938,000 
42.746300 

1360.000 
184300 

184,000 
184,000 
1362300 

13,707,000 
18.891,000 
14,075,000 
14,259,000 
1S321300 

54.129,000 
54,162,000 
54,1S5,(X)0 
64,197,000 
68387300 

2(}.l  16,000 
27,217.000 
28.326.WX) 
29.446300 
38378300 

70,676,000 
70,389,000 
70,092,000 
69.784.000 
73334300 

628,000 
628,000 
628,000 
628.000 
8366,000 

42,5(.H,O0O 
42.252,000 
41380300 
41.718,000 
44,669,000 

184,(XX) 
184,000 
184300 
184.000 
1,130,000 

15305,000 
16.689,000 
15,873.000 

16,057,000 
17,187,000 

68309,000 
67341.000 

57,862,000 

57,773,000 
61,846,000 

39.466,000 
40,666,000 
41377,000 
43,098,000 
56330,000 

72,956,090 

72,56S,000 
72,lfW,(K)0 
7l,7(\0,(m 
75,513,000 

628,000 
628,CK)0 
628,000 
4,482,000 
628.000 

44,31 1,(X)0 
43,052,000 
43,583,000 
47,057.000 
46308300 

1.84,000 
184,000 
184.000 
1313300 
184300 

17,371,000 
17,555.000 
17,739,000 
19362300 
19338300 

61.682.000 
61307,000 
6I3223OO 
66,109300 
66338300 

57,626,000 
58,933,000 
60,250,000 
73378,000 
7438I3OO 

76,029.000 
74334,000 

74,029,000 
78,4iK},000 
773O63OO 

628,000 
628,000 
628,000 
628,000 

46,136,000 
45,6a^000 
45,173.000 
44,676,000 

184,0<X) 
184.000 
184,(X10 
184.000 

19,420,000 
19,604,(XK) 
19,788,000 
19371300 

65.556,000 
65.264,000 
64,961,000 
64317300 

76,395,000 
77319.000 
79.254300 
80399y000 

77,303,000 
78391.000 
78.088300 
75,436300 

to        REPOST  OH  A  Iliy>III  TRANSIT  SYSTBH  FOR  DSTROIT 


OPSRATIIIG  STATISTICS— GROSS  OPBRATINQ  REVENUE  AND 

OPERATING  INCOME 

Cdtiififi  i8.  Tlie  population  of  Ekiroit  is  estimated  to  be  1,000,000  in  1900 
and  2,000,000  in  igs^.  It  is  assumed  that  the  gixiwth  will  be  in  equal 
yearly  increments.  The  figures  shown  in  this  column  represent  the 
average  cstipated  population  in  each  year  from  1922  to  1950  inclusive. 

Column  19.  The  revenue  rides  per  capita  per  annum  are  estimated  to  be 
370  in  1920  and  400  in  1950  and  to  grow  in  equal  increments  ol  one  ride 

per  capita  each  year. 

Column  20.  The  total  revenue  passengers  per  annum  are  obtained  by  multi- 
plying columns  18  and  19. 

Column  21.  The  estimated  gross  operating  revenue  is  calculated  by  multi- 
plying column  20  by  five  cents  giving  the  result  in  dollars  per  annum. 
Five  cents  is  here  assumed  as  the  average  fare  per  revenue  passenger 
tturouglioiit  tlie  twenty-nine  year  period. 

Column  22.  The  operating  income  is  based  on  an  operating  ratio  of  70  per 
cent  for  the  jrears  1922  to  1931  inclusive,  on  71  per  cent  for  1932  to 
1935  and  on  72  per  cent  for  the  subsequent  period.  In  other  words, 
cohimn  22  is  30  per  cent,  29  per  cent  and  28  per  cent  of  cohimn  21  for 
the  above  intervals.  The  operating  expenses  include  18  per  cent  of  the 
gross  operating  revenue  from  1922  to  1931.  19  per  cent  from  1932  to 
1935  and  20  per  cent  from  1936  to  1950,  to  provide  for  maintenance 
and  'depreciation. 


FINANCIAL  PLAN 


tt 


OPERATING  STATISTICS-^0nO68  OPERATING  REVENUE  AND 

€»>ERATING  INCOME 


Ywre 


Column 
Nttmben 


1922 

tm 
im 
im 
im 

1927 
1928 

im 

1S81 

1982 
1«S3 
1034 
1935 


1937 
193« 
1969 
1940 
1941 

1942 
1943 
1944 
1946 
194A 

1947 
1948 
1949 
19B0 


Population 


18 


l,0<j6,00(> 
1,10(),00<» 
1,133,000 
1,186^000 


1,233,000 
1,266,000 
1,:'.0(),()00 
1,333,000 
1,306,000 

1,400,000 
1,433,000 
1,4(>6,0()0 
1,. 500,000 
1,633,000 

1,500,000 
1,600,000 
l.WW.OOO 
1.666,000 
1.700^ 

1,733,000 
1,766,000 
1,800,000 

1,833,(KK) 

i,86r),a)0 

1,900,000 
1,933,000 
1,966,000 
2,000,000 


Revenue  Rides 
per  Annum 


19 


372 
373 
374 
375 
376 

377 
378 
379 
380 
381 


383 
384 
385 
386 

887 
388 
389 
990 
391 

392 
3S3 
394 

:m 

396 
397 


399 
400 


Revenue 
Passengers  per 
Ammm 


20 


397,(xx»,na) 

410,<»(XVMi 
424,<X)(.>,(.KtU 
438,000,000 
462,000,000 

466,<X>),00<) 
479,(KK.»,<I0<I 
493,0tl0,<Xt0 
607^)00,000 
621^000 

535,000,000 
549,aX),000 
663,O00,aX) 
678,OOOjOOO 
692,1)00,000 

606,000,000 
621,000,000 
636,iW0,(X)0 
650,000,000 
066^ 


EEDQXl 


680,000,000 
694,000,000 
709,000,000 
724,000,(HI0 

739,(  HH),(  H  K) 

756,000,000 
770,000,000 
786,000,000 
800.000,000 


Gitiss  Operattag 
Revoiiie 


21 


$19,H5(»,00«1 
2f»,50<i,<l<H) 
21,2lltt,(X»(.» 
21,900,000 
22,600,000 

23,300,000 
23,950,000 
24,(v5<Vi<H) 
25.3dO,OOU 
98||060y000 

26,750,000 
27,450,0(10 
28,150,000 
28,900,(H»(t 
2!>,6(.X),00U 

30,300,000 
31,050,000 
31,800,000 
32,500,000 
33.250,000 

3400QuOOd 

34i700,000 
35,450,000 
36,2<X  >,<•<»<» 
36,95*  >,<»<)(» 

37,750,000 
38,500,000 
39,250,000 
40,000,000 


Opeimtiiit 


22 


$.5,955,000 

6,1.50,000 

(),:iG(»,oito 

6,570,ai0 
6,780,000 

6,990,000 
7,185,000 
7,39.5,000 
7,605,000 
7315,000 

7,700^100 

7,9,50,000 
S,  164,(100 
8,3H1,(X)I> 
8,28S,(KH» 

8,904,000 
9,100,000 
9,305j000 

9,520,000 
9,716.000 
9,926,000 

10,136,(X)0 
10,346,000 

10,570,000 
10,780,000 
10^990^000 
11,200,000 


•I        mBPORT  OM  A  BAPID  TBAMSIT  SYSTBM  POK  DETROIT 


INTEREST  AND  SINKING  FUND 

Column  23.  This  column  shows  the  interest  on  the  Company's  total  out- 
standing bonds  J>ayable  at  the  end  of  each  year,  the  rate  being  assumed 
at  live  per  cent. 

Column  24.  This  column  shows  the  interest  on  the  Company's  outstanding 
jmiior  accurities  payable  at  the  end  of  each  year  the  rate  being  assumed 
at  SIX  per  cent. 

Cdmmm  25.  This  cohumi  shows  the  interest  on  the  City's  outstanding  bonds 
payable  at  the  end  of  each  year,  the  rate  hdng  assumed  at  five  pn  cent. 

Column  26.  This  column  shows  the  intorest  on  the  City's  reinvested  earn- 
ings payable  at  the  end  of  each  year,  the  rate  beii^  assumed  at  five  per 

cent* 

Colitffiit  27.  This  column  shows  the  amount  set  aside  out  of  operating  income 
to  retire  all  bonds.  City  and  Company,  through  the  application  of  the 
sinking  fund,  at  the  end  of  each  year.  The  equity  in  the  property  repre- 
sented by  the  amounts  in  this  column  reverts  automatically  to  the  City 
^reby  reducing  the  purchase  price  (column  17). 

Column  28.    This  column  is  the  sum  of  columns  23  to  27  inclusive  and 
represents  the  total  deductions  which  must  be  made  from  the  operating 
each  year  in  order  to  arrive  at  the  net  divisible  sarfdus. 


FINANCIAL  PLAN 


t3 


INTEREST  AND  SINKING  FUND 


Calendar 
Year 

Interest  on 
Company's 

Bonds 
5  per  cent 

liiLcrcot  un 

Company's 

Junior 
Securities 
6  per  cent 

Interest  on 

City's 
Bonds 
5  per  cent 

X  It  LCI  Co  l( 

City's 
Reinvested 
Earnings 
5  percent 

Sinking 
Fund 

(Bond 
Retirement) 

Total 
Deductioiis 

from 
Gtoeratittg 

Income 

Column 
Numbers 

M. 

24 

25 

26 

27 

28 

1922 
1923 
1924 
1925 
1926 

$1,650,000 
1,(>54,00() 

l,660,0(k) 
1335^ 

$581,000 

:)!IL',(  HHI 
(i03,(KN) 
()14,0(K> 
686,000 

$585,000 

")(>(•.,(  HH  ) 
.").")( i,(MHI 

906,000 

•       •  • 

^13^000 

$745,000 
7.>5,(t(tO 
7(t«i,0(iU 
776,000 
964,000 

$3,561,000 
3,57(i.(X^lO 
3,592.000 
3,606,(X)0 
4,704,000 

1927 
1928 
1929 
1930 

mi 

1,834,000 
1,832,000 
1,830,000 
1^7,000 

697,000 
708,000 
719,0<H» 
730,000 
741^0 

890,000 
874,000 
858,000 
»43,000 
827^ 

313,000 
313,000 
313,000 
313,000 

8is/no 

975,000 
<«5,000 

9!t('),0<^t 

i,oo6,oa» 

1,017^000 

^mm 

4,712,000 
4,716,000 
4,719,000 
4,722,000 

vm 

1933 
1934 
1935 
1936 

2,021,000 

2,014,000 
2,(105,000 
1,997,000 
2,137,000 

822,000 
834,000 
845,000 

S5(),0(K) 
919,(HK» 

827,000 
811,000 

795,000 

779,(K10 
7t«.0(X) 

857,000 
857.000 
857,000 
857,000 
1,242.0(X) 

l,109jOOO 

1,120,000 

l,130.(t(H» 

1.1".»().(KMI 

6.fl26j000 

5,622,000 

5.(il9,(t('Ht 
(■..•_'51,(XKI 

1937 
1938 
1939 
1940 
1941 

2,125,000 
2,112,000 

2,099,(100 
2,086,000 
2M000 

930,000 
941,000 

952,000 
i>63,000 

747,000 
732.000 
715,000 
699,000 
683AN)0 

l,242,aiO 
1,242,000 
1,242,000 
1,242,000 
1,842JOOO 

l,2(.l0,000 
1,211^100 
1,221;000 
lS32m 
1,296.000 

6,244.(Kt0 
«»23s,(i0o 
6.22UJQ00 
6^000 

imm 

1942 
1943 
1944 

1945 
1946 

2,216,000 
2,l»7j000 
2,179,000 

2,352,000 
2,33O,0(K) 

1,(142,000 

1,053,000 
1,064,000 
1,143,000 
1,154,000 

fi67,(X)0 
651,000 
635.000 

(519,000 
(iO3,0(l0 

1,842,00(1 
1  1,842AN) 

1  i,842xno 

2.442,000 
2,442,000 

I,3(t7,(i00 
1,317^)00 
1,828^ 
1,403.000 
1,414,000 

7,073.000 

7/>48,000 

7,a59,O00 
7,943,000 

1947 
1948 
1949 

2.306,(K10 
2,283,000 
2,268,00(,) 

1,165,(XK) 
1,176,000 
1,1S7,00() 

587,000 
571,000 

1         5.1.") ,(  H  H  I 

1 

2,442,000 
2.442,(K)0 
2,442,(X)0 

1,424,000 
l,4:i5,(KiO 
1,445,(KX> 

7,f>24,O00 
7,!K)7,00<1 
7,8S7.(VX> 

I 


•4      wmmm  on  a  sapid  transit  systsm  for  Detroit 


MSTRIBimON  OF  NBT  DIVISIBLB  SURPLUS 

C^wmn  29.  The  net  divisible  surplus,  shown  in  this  column  is  the  amount 
retnainine  alter  dcdnctine  cdtunii  28  from  tht  operating:  inoom^, 
coliiiiifi  22. 

ColfMWii  ja  TMs  cdttinn  shows  the  Company's  share  in  the  net  divisible 
surplus  and  is  50  per  cent  of  the  same  unless  the  amount  so  established 

makes  the  Company's  total  income  more  than  ei^ht  per  cent  on  the  par 
value  of  the  Company's  then  outstanding  securities.  All  amounts  alwve 
this  eight  per  cent  are  allotted  to  the  City  in  addition  to  the  50  per  cent 
of  the  net  divi^ble  surplus  otherwise  ^lo^cd. 


Cuittmn  31.    This  column  is  the  sum  of  columns  23,  24  and  30,  and 

the  total  amounts  paid  each  year  out  of  tine  operating  imxMne  to  the 
UMnpony. 

Cdrntm  52.  This  csolumn  shows  the  actual  rate  of  return,  each  year,  on  the 
Con^paiqr's  total  outstanding  securities. 

Cdmnm  35.  This  colanut  shows  the  City's  share  in  the  net  divisible  surplus 
and  is  50  per  cent  of  same  or  more  in  accordance  with  the  exidanation 
given  m  Cohmm  3a 

Column  34.  This  column  is  the  sum  of  columns  25,  26  and  33  and  represents 
the  total  amounts  paid  to  the  City  each  year  out  of  the  operating  income. 

Cidmmn  35.  This  column  is  the  actual  rate  of  return  each  year  on  the  City's 
total  of  outstanding  bonds  aixl  reinvested  earnings. 

Ci^umn  36.   This  column  shows  the  amount  of  the  traction  fund  whidi  is 
assumed  to  be  created  1^  the  accumulation  of  the  City's  uninvested  eam- 
,  ings  with  interest  at  four  per  cent  as  explained  in  column  9. 

These  sums  in  column  36  if  deducted  from  the  purchase  price, 
column  17,  would  show  the  actual  amount  of  additional  cash  in  any  year, 
which  the  City  would  have  to  pay  to  own  the  unified  system,  free  of 
all  debt* 


iHiiii 


financial  plan 


•s 


DISTRIBUTION  (M  NBT  DIVISIBLE  SURPLUS— TRACTION  FUND 


Cakn- 
dw 
Ymx 

Net 

Divisible 
Surplus 

Com- 
pany's 
Share  in 
Divisible 

Net 
Surplus 

Com- 
pany's 
Total 
Income 

(Interest 
and 

Surplus) 

Rate  of 
Return 
on  com- 
pany's 
Out- 
standing 
Securi- 
ties 
peroeot 

Uty  s 
Share  in 
Divisible 
Net 

Surplus 

City's 
Total 
Income 
(Interest 

and 
Surpius) 

Rateo<{ 
Return 

on  City's 

Out- 
standing 

Bonds 
and  Re- 
invested 

Income 
percent 

City's 

u  nin* 
vested 
Earnings 
(Cumula- 
tive with 
4  percent) 

Column 
Nos. 

29 

90 

81 

32 

33 

34 

36 

38 

1922 
1923 
1924 
1986 

ins 

$2,394,000 
2,574,000 
2,768,000 
2,964,000 

$1,183,000 
1,190,000 
1,196,000 
1,201,000 

$3,414,000 
3,436,000 
3,456,000 
3,475,000 

8.00 
8.00 
8.00 
8.00 
7^ 

$1,211,000 
1,384,000 
1,572,000 
1,763,000 
1,088,000 

$1,796,000 
1,959,000 
2,138,000 
2,319,000 
2.257.000 

15.35 
17.02 
18.90 
2a90 
A27 

•      •      •  « 

■      •      <*  * 

1927 
1928 
1929 
1930 
1931 

2,281,000 
2.473,000 
2,679,000 
2,886,000 
3,093,000 

1,140,000 

1,236,000 
1,339,000 
1,340,000 
1,341,000 

3,671,000 

3,776,0(X) 
3,888,000 
3,897,000 
3,906,000 

7.61 

7.80 
8.00 
8.00 
8.00 

l,141/)00 
1,237,000 
1,340,000 

1,646,0(X) 
1,752,000 

2344,000 

2,424,000 
2,511,000 
2,702,000 
2,892,000 

10.20 
10.72 
11.68 

12.69 

•  •      •  • 

•  »      «  ■ 

•  •      •  • 

1932 
1983 
1934 
1935 
UM 

2,134,000 
2,336,CKX) 
2,642,000 
2,762,000 

1,067.000 
1,167,000 
1,217,000 
1,381,000 
l/ttllJOOO 

3,910,000 
4,016,000 
4,121,000 
4,234,000 
4,074,000 

7.22 
7.41 
7.61 
7.82 
7.02 

1,067,000 
1.168.000 
1,271,(K)0 
1,381,(XK) 
l.O19/)0O 

2,751,000 
2.836.000 
2,923,000 
3.017300 
3324300 

8.18 
8.61 
8.86 
9.22 
7.64 

•      •      •  «• 

11.107306 

1987 
1988 
1989 

1940 
1941 

2,456,000 

2,676,000 
2,879,000 
2,220,000 

1,120,000 
1,228.000 
1,337,000 

1,439,000 
1,110,000 

4,I75,()(R) 
4,281,000 
4.388,000 
4,487,000 
4,374,000 

7.21 
7.39 
7.59 
7.77 
7.07 

1,120,(X»0 
1.228.000 
1.338,000 
1,440,000 
1,110,000 

3,U»9,(»00 
3.202.000 
3.295.000 
3,381,000 
3,635,000 

7.82 
8.12 
&42 
8.72 
7.20 

1,151,00(1 
1,197.000 
1.246.000 
1,295,000 
2,687,000 

1942 
1943 
1944 
IMS 
1M6 

2,447,000 
2,656,000 
2^78,000 
2,177,000 
8,408^ 

1,223,000 
1,328,000 
1,439,000 
1,068,000 

4,480,000 
4,578,0(X) 
4,682.000 

4,688,000 

7.26 
7.45 
7.64 
6.94 
7.12 

1,224,000 
1,328,000 
1,439,000 
1.068,000 

3,733,000 
3,821,000 
3.U16.000 
4,160.000 
4.247.000 

746 
7.67 
7.91 
6.78 
6i98 

2,794,000 
2,906,000 
3,023,000 
4359,000 
8364300 

1947 
1948 
1949 
1950 

2,646,000 
2,873,000 
3,10B/K» 

1,323,000 
1.436»000 

4,794,(X)0 
4395,000 

7.32 
7.60 
7.60 

1,323,000 
1,437.000 
1M00O 

4,352,000 
4,460.000 
4^6l8y000 

7.20 
7.39 
7.60 

12,031,000 
16,278,000 
20,811,000 
25,542.000 

m  MAO  JMD  nWPMSNT 
Sa/?rAC£  4  /^APiD  TRANSIT  UNeS 


£Oi//rr  M  MyesTMmr 

FOR  ROAD  AND  £Qa/PM£NT 
AS  ArF£OT£D  DY  T/f£  S/NK/N6  rOND 
AND  TN£  CITr  'S  R£/NI/£ST£D  £ARN/NGS 

UN/F/£D  erCT£Af 

Simmce  4  rap/d  tran^/t  l/nes 


87 


88 


! 


FINANCIAL  PLAN 


COMPARISON  OF  TYPICAL  ALTERNATIVE  FINANCIAL 

PLANS 

Investment  Per  Capita  Compared  With  Other  Cities 

The  perusal  of  the  following  statistical  data  will  be  helpful  in  judging 
of  the  economy  of  the  traction  system  proposed  in  this  Report. 

The  Boston  unified  surface,  elevated  and  subway  system  in  1907 
served  a  population  of  1,016,395  and  Iiad  invested  in  its  transportation  sys- 
tem $65,979,896  or  $65.00  per  capita. 

In  1916,  Boston  had  invested  $116,022,000  in  its  unified  transportation 
system  serving  a  population  of  1,244,645,  or  the  investment  per  capita  in- 
creased to  $93.0C}t. 

In  1916,  Chicago  served  its  population  of  2,500,000  with  competing  sur- 
face and  elevated  systems,  representing  conservatively  a  valuation  of  $220,- 
000,000  of  which  $150,000,000  is  the  purchase  price  of  the  surface  car  system 
under  agreement  with  the  City  under  pidilic  regulation,  and  $70,cioo,ooo  is  a 
conservative  valuation  of  the  elevated  Unes  made  by  the  Chicago  Traction 
and  Subway  Commission.  This  means  an  investment  of  $88.00  per  capita 
of  population  served.  The  luiified  system,  surface,  elevated  and  siilnvay 
recommended  by  the  Traction  and  Subway  Commission  for  1937  would 
involve  an  investment  of  $102.00  per  capita  of  population  served. 

Ban  A,  which  is  shown  in  detail  and  recommended  in  this  report,  con- 
templates an  initial  investment  by  1922  of  $54,380,006  for  a  population  of 
1,066,000,  or  $51.00  per  capita.  By  1942  an  investment  of  $132,655,000  is 
contemplated  for  a  population  of  i,733»«».  ^  $76.50  per  capita  of  popula- 
tion. By  1950.  $156,134,000  is  invested,  or  $78.00  per  capita  under  this  plan. 

Considering  the  physical  conditions  of  Boston  and  Detroit,  the  relative 
expenditure  per  capita  in  Detroit  seems  reasonable,  being  lower  on  account  of 
ease  of  construction,  the  level  territory  and  the  absence  of  the  obstructions  by 
hills,  rivers  and  extremely  narrow  streets,  wfaidi  occur  in  Boston.  The  reason 
for  the  cost  being  lower  than  Chicago  is  that  instead  of  two  extensive  com- 
petitive systems  forming  the  basts  of  a  un^ed  system,  Detroit  now  has  the 
opportunity  to  avoid  duplication  of  surface  and  rapid  transit  Unes  in  the  plan 
here  laid  out,  which  with  the  more  compact  and  cfvenly  distributed  residential 
and  occupational  districts  reduces  the  necessary  investment 

The  estimates  of  cost  for  the  different  lines  proposed  in  Detroit  are 
shown  in  Appendix  VI. 

Three  typical  plans  in  whicli  various  important  factors  have  been  varied 
may  be  described  and  compared  as  follows : 


•I        RSPORT  Oil  A  lUyPID  TSjyiSIT  SYSTEM  FOR  DSTROIT 


Plan  A 

Pbe  A  contemplates  an  adequate  but  conservative  building  prognun,  an 
average  uniform  fare  of  five  cents  throughout  the  period,  with  free  transfers 
between  all  lines.  A  first  class  service  is  allowed  for  in  the  operating  eacpense. 
The  interest  charges  and  return  to  the  City  and  Company  are  kept  within 
reasonable  limits,  but  such  as  will  permit  of  the  sale  of  securities,  namely, 
showing  a  return  equal  to  from  iVa  to  times  the  interest  reciuirements. 
The  net  surplus  is  of  sufficient  size  to  insure  the  payment  of  all  interest  charges, 
even  if  the  actual  results  of  operation  should  deviate  to  some  extent,  as  may  be 
expected,  from  the  assumed  conditions  of  trafhc  used  in  estimating  the  return 
under  this  financial  plan. 

Plan  B 

A  number  of  plans  based  upon  the  selling  of  six  tickets  for  25  cents  and 
universal  transfers  were  worked  out,  but  with  unsatisfactory  results.  These 
plans  are  grouped  under  Plan  B.  A  curtailed  building  program  was  here 
assumed  and  the  investment  of  the  City  was  reduced  to  $53,663,000  by  1950 
against  $68,050,000  under  Plan  A.  On  account  of  the  decrease  in  the  surplus. 
Plan  B  involved  the  issuance  by  the  City  of  $25,533,000  bonds  as  against 
$19,217,000  under  Plan  A.  The  security  of  the  bondholders  as  to  their  interest 
is  not  well  protected  with  this  lower  fare  under  fluctuating  conditions  of  traffic 
even  though  a  curtailed  service  was  assumed  in  Plan  B. 

This  type  of  plan  results  in  lack  of  financial  strength,  which  makes  the 
sale  of  the  securities  very  difficult.  It  is  also  believed,  that  Plan  B  would  be 
unsatisfactory  to  the  public  both  as  to  the  extent  of  operated  trackage  and  as 
to  frequency  of  service. 

Flm  C 

In  a  series  of  tables,  which  may  be  called  Plan  C,  curtailment  of  the 
building  program  from  Plan  A  was  assumed  the  same  as  under  Plan  B.  The 
fare  charged  was  taken  at  six  tickets  for  25  cents,  as  in  Plan  B.  The  service 
assumed  in  this  type  of  plan  was  e(|ual  to  that  of  Plan  A.  This  results  in  an 
annual  deficit  to  be  made  up  by  the  City,  if  all  interest  charges  are  to  be  met 
and  the  Company  is  to  receive  a  minimum  return  of  seven  per  cent  on  its  out- 
standing securities.  This  deficit  would  amount  to  from  $1,187,000  to 
$2,890,000  annually.  There  being  no  other  return  on  the  City's  investment 
than  actual  interest  on  seairities  issued  under  Plan  C  the  whole  cost  of  con- 
iHucting  the  raf»d  transit  lines,  $53,665,000,  must  be  raised  from  the  sale  of 
homls  issued  by  the  City. 

These  results  demonstrate  clearly  tliat  adequate  service  cannot  be  rendered 


FINANCIAL  PLAN 


91 


at  less  than  an  average  five-cent  fare  on  a  self-supporting  unified  surface  and 
rapid  transit  system  even  with  the  strictest  regulation  of  investment  and 
return. 

Realizing  the  fluctuating  character  of  the  cost  of  service  from  year  to 
year  the  plan  recommended  in  this  report  provides  for  regulation  of  the  fare  to 
conform  to  the  cost  of  the  service  and  for  the  limiting  of  the  return  upon  the 
investment  to  the  lowest  rate  at  which  cs^iital  can  be  secured  from  time  to  time. 


CHAPTER  V 
CONCLUSIONS  iUND  RBCOlf  MBNBATIONS 
Conclusions 

In  view  of  the  foregoing  stutcmcilt  of  facts  and  their  analysis  covering 
the  existing  and  indicated  future  traffic  situation  in  the  City  of  Detroit,  as 
developed  by  our  investigation  of  19 14  and  supplemented  and  confirmed  by  a 
further  study  in  191 7,  the  following  conclusions  are  reached. 

1.  Detroit  can  confidently  be  expected  to  grow  in  the  near  future  to 
a  size  which  w  ill  support  and  necessitate  rapid  transit  to  supplement  the  exist- 
ing street  car  system.  A  canvass  made  along  conservative  lines  warrants  the 
assumptitjn  that  the  present  i)opulation  is  over  850,000  and  perhaps  nearly 
900,000  in  the  City  and  suburbs  (^^  l>etroit.  A  future  estimate  of  1,500,000 
|X)pulation  for  1935  and  2,000,000  population  in  1950  is  reasonable. 

2.  The  existing  traffic  conditions  involving  rush  hour  congestion  as  well 
as  continuous  traffic  throughout  the  day  warrant  the  inunediate  decision  as  to 
the  construction  of  a  rapid  transit  line  on  at  least  one  thoroughfare  in  the  City. 
In  this  connection  it  is  pointed  out,  that  the  period  necessary  for  negotiation, 
detail  designing,  letting  of  contracts  and  construction  is  probably  three  years 
and  consequently  further  congestion  must  be  considered  certain  before  relief 
can  be  obtained. 

3.  Subsequent  growth  of  the  City  in  other  districts  will  require,  from 
time  to  time,  the  building  of  high  speed  lines,  which  should  form  a  thoroughly 
0)-ordinated  system. 

4.  The  best  service  for  the  public  at  the  lowest  cost  can  be  supplied  by 
a  system  of  surface  and  rapid  transit  lines  operated  as  a  unit,  with  transfers 
and  connections  so  arranged  that  for  a  single  fare  and  free  transfers  passen- 
gers may  conveniently  utilize  both  types  of  transportation. 

5.  An  independent  competitive  rapid  transit  system  will  not  offer  a 
satisfactory  traffic  solution  nor  can  it  be  financed  successfully  as  a  self-support- 
ing enteqirise  by  either  the  City  or  the  Company. 

6.  The  financing  of  a  unified  system  by  private  capital  without  the 
City's  financial  co-operation  is  not  considered  practical;  nor  can  such  a  unified 
system  be  financed  by  the  City  alone  under  existing  charter  limitations  as  to 

permissible  amount  of  the  bond  issue. 

7.  In  other  cities  co-operation  and  partnership  between  the  city  and 
the  companies  has  been  secured  and  tried.   Benefiting  by  the  experience  thus 

M 


CXXNCLUSIONS  AND  RECOMMENDATIONS 


93 


obtained  and  by  utilizing  charter  provisions  of  the  City  of  Detroit  as  to  the 
bond  issue,  a  satisfactory  combined  system  of  surface  and  rapid  transit  line.4 
can  be  financed  and  operated  and  be  made  self-supporting.  Commission  con- 
trol of  transportation  systems  has  been  developed  to  a  point  where  the  weak- 
nesses and  defects  of  existing  regulatory  systems  have  been  recognized,  so 
that  it  is  possible  to  now  devise  a  commission  control,  whidi  wiU  secure  good 
service  and  a  fair  share  of  the  fetttm  to  tiic  City  from  the  operation  of  ^ 
system. 

8.  In  order  to  provide  adequate  facilities  and  good  service  in  a  reason- 
able time  proportionate  to  the  City's  growth,  the  financial  bunten,  even  if 
supfiortfid  by  the  City's  credit,  cannot  be  carried  by  the  operating  revenue 
without  an  increase  of  the  fare  above  that  now  charged  for  surface  car  trans- 
portation. 

Rtfifwui'miMia^MWMt 

It  is,  therefore,  recommended  : 

A.  That  a  Unified  Surface  and  Rapid  Transit  system  be  planned  as  the 
best  permanent  sohition  of  the  City's  traffic  proUera,  and  that  every  effort  be 
made  lo  work  toward  securing  sudi  a  system  with  one  fare  and  transfers 
between  all  lines. 

That  to  this  end  a  partnership  agreement  be  entered  into  between  the  City 
of  Detroit  and  a  Company  formed  to  take  over  the  city  lines  of  the  Detroit 
United  Railway;  ythidb  partnership  shall  provide  for  the  City  to  finance,  con- 
struct and  own  the  structures  of  the  rapid  transit  lines,  and  for  the  Company 
to  finance  and  construct  the  surface  line  extensions  and  to  supply  all  the 
equipment  for  both  surface  and  rapid  transit  lines. 

This  partnership  agreement  to  further  provide  for  the  operation  by  the 
Company  of  the  entire  system  under  a  terminable  license  and  subject  to  super- 
vision as  to  financing,  construction  and  service  rendered,  by  the  Board  of 
Street  Railway  Commissioners.  The  financial  details  of  the  proposed  agree- 
ment are  treated  under  the  "Financial  Plan." 

B.  That  a  policy  be  decided  upon  of  building  subways  only  in  the  con- 
gested centers  of  the  City  and  that  rapid  transit  lines  be  extended  through 
the  outlying  districts  by  a  system  of  overhead  tracks  placed  upon  private 
right-of-way,  or,  where  the  streets  are  sufficiently  wide  to  permit  of  a  single 
column  structure  in  the  center  of  the  street.  with<3ut  obstruction  of  light  and 
access  to  the  adjoining  property,  that  this  method  be  followed. 

C.  That  negotiations  be  at  once  commenced  with  the  present  owners  of 
the  surface  lines  to  the  end  of  accomplishing  recommendation  "A".  That 
simultaneously  the  necessary  legal  steps,  surveys,  and  detail  plans  for  a  north 
and  south  rapid  transit  line  on  Woodward  avenue,  and  an  east  and  west  rapid 


m         REPORT  ON  A  RAPID  TRANSIT  SYSTEM  FOR  DETROIT 


transit  line  on  or  near  Michigan-Gratiot-Forest  avenues  be  made,  so  that  upon 
the  termination  of  the  war,  construction  could  immediately  begin. 

So  much  time  has  been  required  in  other  cities  for  the  necessary  pre- 
liminary work,  legal  agreements,  surveys,  acquisition  of  right-of-way,  design 
of  structures,  etc..  that  all  such  matters  should  be  taken  up  as  soon  as  practic- 
able and  worked  out  in  final  form.  Tt  is  pointed  out  that  if  these  matters  are 
neglected  or  postponed  until  normal  economic  conditions  are  restored,  the 
ensuing  period  of  reestablished  activity  will  produce  traffic  congestion  far 
worse  than  any  yet  experienced  in  Detroit. 

D.  That  the  necessary  legal  steps  be  taken  for  securing  the  various 
additional  powers  and  stipulating  the  functions  of  the  Commissioners  in  their 
regulation  and  control  of  the  City-Company  partnership  as  will  be  necessary 
to  fully  carry  out  the  plan  herein  proposed.  Whether  such  matters  can  be 
properly  provided  for  in  a  joint  City-Company  agreement  under  the  charter 
amendment  of  April  7,  191 3,  or  whether  a  further  amendment  of  the  charter 
ii  necessary,  is  a  question  for  decision  by  the  legal  advisers  of  the  City  and  of 
tiie  Oom^psny* 

E.  That  as  the  charter  amendment  of  April  7,  191 3  provides  for  im- 
mediate complete  municipal  ownership  and  operation  of  the  system,  whereas 
the  plan  herdn  proposed  contemplates  a  preliminary  period  which  may  extend 
over  a  number  of  years  during  which  joint  City-Company  partnership  will  be 

in  effect,  it  is  obvious  that  certain  additional  provisions  and  possible  modifica- 
tions in  the  organization  of  the  Board  of  Street  Railway  Commissioners  as 
provided  for  in  the  amendment  will  be  necessary.  It  is  recommended  that  if 
they  can  be  made  legally  effective  and  binding,  such  provisions  be  incorporated 
in  the  City-Company  agreement  so  as  to  safeguard  the  interests  of  the  traveling 
pmilic,  of  the  investors  in  City-Company  securities  and  of  the  operating  com- 
pany, during  the  period  of  joint  partnership. 

F.  That  in  the  agreement  or  charter  amendment  the  Commissioners  l>e 
empowered  to  approve  or  disapprove  of  additional  rapid  transit  lines  or  street 
railway  extensions  or  equipment,  or  both,  either  on  their  own  initiative  or 
when  petitioned  by  either  the  City  authorities,  or  by  the  Company,  or  by  a 
citizens'  conmiittee,  so  that  they  are  given  full  control  of  the  "Building  Pro- 
gram** such  as  outlined  in  this  Report. 

G.  That  the  agreement  or  charter  amendment  for  City-Company  part- 
nership contain  suitable  legal  powers  authorizing  the  Board  of  Street  Rail- 
way Commissioners  to  supervise  and  approve  the  City's  necessary  traction 
bond  issues  and  all  of  the  issues  of  securities  by  the  corporation  operating  the 
nmiied  properties.  Hiis  reconmiendation  being  aimed  to  secure  complete  uni- 
formity of  action  and  control  of  both  classes  of  securities. 


CONCLUSIONS   AND  RECOMMENDATIONS 


9S 


H.  That  it  shall  be  mandatory  upon  the  Commissioners  to  so  regulate 
the  charge  for  fores  and  transfers  on  the  unified  system  as  to  maintain  a  sound 
financial  condition  of  the  combined  and  unified  properties,  as  contemplated 
in  ^e  charter  provision  for  municipal  ownership.  This  is  necessary  to  make 
the  securities  issued  either  by  the  City  or  the  operating  company,  under  the 
ComntiasioHers*  direction  and  control,  salable  to  the  general  puMtc. 

I.  That  the  Commissioners,  in  the  regulation  of  fares  and  the  author- 
izing of  construction  expenditures,  shall  be  required  to  aim  to  maintain  the 
gross  operating  revenue  at  such  an  amount  as  will  not  only  pay  all  operating 
expenses,  interest  and  sinking  fund,  but  also  will  provide  a  substantial  surplus, 
so  that  the  City's  share  in  said  surplus,  plus  the  bonds  which  the  City  can  issue 
under  its  two  per  cent  limit  will  meet  the  construction  re(iulrenients  of  the 
rapid  transit  lines.  The  Com])any's  share  in  this  surplus,  plus  the  interest 
charges  on  its  outstanding  securities,  shall  in  each  year  be  not  less  than  an 
agreed  upon  minimum  per  cent  on  said  securities. 

J.  That  an  interest  reserve  fund  shall  be  created  by  the  sale  of  bonds  in 
sufficient  amount  to  equal  three  per  cent  on  the  outstanding  City  and  Com- 
pany securities.  Said  fund  to  be  held  by  a  trustee,  who  shall  invest  three- 
fourths  of  said  fund  in  United  States  bonds,  and  hold  one-fourth  in  cash. 
Tins  ftmd  is  to  be  drawn  t^n  only  to  pay  interest  and  dividend  charges  on 
the  outstanding  securities,  and  then  only  in  the  event  that  the  operating 
ina»ie  is  not  sufficient  in  any  one  year  to  meet  these  diarges. 

K.  That  in  the  event  of  such  a  use  being  made  of  the  interest  reserve 
fund  it  shall  be  the  duty  of  the  Commissioners  to  immediately  increase  the 
fares,  reduce  the  service  or  otherwise  increase  the  net  inoMiie  so  as  to  fully 
reimburse  this  fund  out  of  the  surplus  earnings  in  the  next  succeeding  year. 

L.  That  a  purchase  price,  based  upon  cost,  be  fixed  upon  the  surface  line 
system  and  equipment  for  surface  and  rapid  transit  lines  at  which  price  the 
City,  during  the  term  of  the  agreement,  may  acquire  the  property  upon  suitable 
notice.  That  this  purchase  price  shall  be  based  upon  a  fair  value  of  the  Com- 
pany's surface  line  system  at  the  time  of  the  agreement,  plus  the  actual  addi- 
tional investment  in  the  property,  under  commission  supervision.  That  the 
equity  in  the  property  represented  the  bonds  r^ired  eadi  jrear  shall  revert 
to  the  City  so  that  through  the  action  of  the  sinking  fund,  city  owno^ip 
of  the  surface  line  systwn  shall  be  added  to  the  dty  ownership  of  the  rapid 
transit  lines  awl  the  ownership  of  the  whole  system  thus  ultimately  shaM 
become  vested  in  the  Oty. 


i 


APPENDICES 


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II 


APPENDIX  I 


Transfer  Count 

The  tables  and  diagrams  here  published  are  based  on  a  transfer  count 
made  on  Wednesday,  JtHie  27,  in  co-operation  with  the  Detroit  United 
Railway.  Hie  conductors  on  tiie  cars  wete  instructed  to  use  special  care  in 
the  lumdling  of  the  transfer  tickets  and  in  the  accurate  punching  of  same. 
These  transfer  tickets  were  collected,  sorted  by  routes,  by  five  time  periods  and 
by  direction.  They  were  then  further  classified  as  single  and  double  trans- 
fers. The  counting  anrl  talnilation  was  then  completed  to  define  the  numher 
and  direction  on  each  line  and  the  total  of  the  transfers  on  the  entire  system. 
The  table  on  page  98  shows  the  total  traffic,  on  each  line,  by  classes  of  riders 
on  that  representative  day,  resulting  in  the  classification  of  1,225,057  total 
passengers. 

The  discussion  of  the  distribution  of  the  transfer  passengers  <mi  the  main 
lines,  and  their  rdation  to  the  total  traffic  has  been  given  in  the  text  of  the 
Rqport.  Attenti(m  is  called  here  to  the  almost  universal  use  by  passengers 
of  the  tidcets  sold  at  seven  for  25  cents.  It  will  be  noted  that  only  273  tickets 
were  used  at  the  price  of  tidcets  for  25  cents,  while  the  number  of  riders 
using  eight  tickets  for  25  cents  is  only  about  five  per  cent  of  the  total  and  only 
slightly  more  than  the  number  of  five-cwt  ca^  passengers.  This  distribution 
results  in  an  average  fare  paid  per  revenue  passenger  of  3.53  cents  and  an 
average  fare  per  total  passengers,  including  transfers,  of  2.55  cents. 

The  diagrams,  page  29,  show  the  total  transfer  movement  on  every  car 
line,  and  also  indicate  the  density  of  this  part  of  the  traffic  on  each  of  the  sur- 
face lines. 

Diagrams,  pages  100,  loi  and  102,  show,  for  the  Woodward,  Michigan- 
Gratiot  and  Jefferson-Grand  River  lines,  the  transfer  movement  at  each  inter- 
section of  these  with  other  car  lines.  These  diagrams  visualize  the  extreme 
importance  of  the  transfer  at  the  central  district,  in  which  area  more  than  one- 
third  of  all  the  transfer  movement  in  the  City  occurs. 


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APPENDIX  II 

Traffic  Studies 

The  tables  shown  in  this  appendix  are  the  result  of  a  study  made  as  to  the 
probable  number  of  paisengers,  who,  in  1916,  would  have  been  carried  on 
rapid  transit  lines  in  Detroit,  if  sudi  wotdd  have  been  operated  along  the 
routes  of  some  of  the  existing  main  surface  lines.  A  summary  of  these  tables 
is  given  in  the  text  of  the  Report,  page  32. 

On  each  line  the  actual  distribution  of  the  passengers  with  r^^rd  to  their 
origin  and  destination  was  determined  first,  and  from  this  the  number  of  pas- 
sengers riding  distances  of  less  than  one  mile,  betw  een  one  and  two  miles,  two 
and  three  miles,  etc.,  was  calculated.  The  proportion  of  the  passengers  who 
would  use  the  rapid  transit  line  laid  out  along  the  same  general  route  was 
then  figured  out  with  the  help  of  the  diagram  on  page  104,  the  assumption 
being  made  that  the  same  fare  is  charged  t^n  both  surface  and  rapid  transit 
lines  and  free  transfers  given  from  one  system  to  the  other. 

The  diagram  showing  the  proportion  of  passengers  now  using  the  sur- 
face Hues,  who  would  be  tributary  to  a  rapid  tnmsit  line  similarly  located,  was 
deteitnined  by  the  method  of  time-saving.  It  has  been  found  in  various  traf- 
fic studies  in  other  cities  that  the  jH-oportion  of  riders,  who  will  transfer  to,  or 
utilize,  a  rapid  transit  line  in  preference  to  a  surface  line,  bears  a  definite  ratio 
to  the  time  saved,  if  the  fare  and  the  convenience  of  transfer  are  on  an  equal 
basis.  Thus,  for  three  minutes  saved,  about  eight  per  cent  of  the  passengers  will 
transfer  to  or  use  a  rapid  transit  line ;  for  ten  minutes  saved,  60  per  cent,  and 
for  fourteen  minutes  saved,  80  per  cent  will  transfer  to  or  use  a  rapid  transit 
lli».  The  time-saving  above  mentioned  is  a  net  saving  in  every  case,  proper 
allowance  being  made  for  the  time  of  transfer,  waiting  for  cars,  walking,  etc 
In  this  study  it  has  been  assumed  that  the  speed  of  die  surface  cars  is  nine  miles 
per  hour  on  an  average  and  that  the  average  speed  on  the  rapid  transit  trains 
is  16  miles  per  hour. 

The  detailed  trafiic  count  made  in  19 14  w  as  used  as  the  basis  of  these 
tables  and  an  increase  proportionate  to  the  increased  traffic  in  1916  was  pro- 
rated and  distributed  along  the  whole  line.  The  accuracy  of  this  method  was 
satisfactorily  tested  by  comparison  with  traffic  counts  made  during  1916  by 
the  Detroit  United  Railway. 


103 


DETROIT  TRAFFIC  STUDIES— 1916 


GR08ST0WN  LINE 


Actual 
Number  of 

Passcnf^crs 
on  Surface 
Line  • 

Estimated  Rapid 
Transit  I>assengers 

Per  cent 

Number 

Number  of  passengers  riding  less  than  1  mile  .... 
Number  of  passengers  riding  between  1  and  2  miles .  . 
Number  of  passengers  riding  between  2  and  3  miles.  . 
Number  of  passengers  riding  between  3  and  4  miles . 
NumVer  of  passengers  riding  1-ctwern  4  and  .i  m'les  . 
Number  of  passengers  riding  between  5  and  6  miles . 
Number  of  passengers  ridii%  betwem  6  and  7  miles . 

l.V>2:?.:isi 

!M4(>,<MKI 
(i,3S«,U(X) 
4,646,000 
3,SS<i.<W10 
1,5!»4,(XK) 
NOU,000 

s 
24 
45 
(i2 
76 
H7 
115 

2,2<  H  l,(  H  K  1 

2,S7O,(IU0 
2,K7O,O0(> 
2,!»60,000 

i;«KM>o»» 

700,000 

41.477.:?S1 

34.4 

14,2')0,(KKi 

2.05  miles 

3.3  miles 

FORT  LINE 


Actual 
Number  of 
Passengers 

on  Surface 
i.inc 

Estimated  Rapid 
Transit  Passei^>etB 

Per  cent 

Number 

Number  of  passengers  riding  less  than  1  mile  . 
Number  of  passengers  riding  between  1  and  2  miles  . 
Number  of  passengers  riding  between  2  and  3  miles  .  . 
Number  of  passengers  riding  between  3  and  4  miks  . 
Number  of  passengers  riding  between  4  and  6  miles  .  . 
Number  of  passengers  riding  between  5  and  6  miles  . 
.  Number  of  passengers  riding  between  6  and  7  miles  . 
Number  of  passengers  ridi^  over  7  miles  ..... 

4,s;V-'.iHi:? 
t),4r.ri.(KN) 

•  5,721  >,(K  HI 

3,02(MNH> 
4;i46,<lU0 
156,000 
160,000 

g 
24 
-!."> 
62 
7(> 
87 
!I5 
100 

1,.V>0,(I<H» 
3,(vit>,<HH» 

1<M»,000 

15,'»<t4,<«Ht 
3.72  miles 

2.S1  miles 

JEFFERSON-GRAND  RIVER  LINE 


Actual 
Number  of 
Passengers 
on  Surface 

Lines- 

Estimated  Rapid 
*  Transit  Passengers 

Percent 

Number 

Number  of  passengers  riding  less  than  1  ni'lc 

Number  of  passengers  riding  between  1  and  2  miles.  . 

Number  of  passengers  riding  1  etween  2  and  3  miles.  . 
1  Number  of  passengers  riding  between  3  and  4  miles .  . 

Number  d[  passengers  riding  between  4  and  5  miles .  . 
'  Number  of  passengers  riding  between  5  and  6  miles .  . 

Number  of  passengers  riding  between  6  and  7  miles .  . 

Number  of  pesiei^rsriditig  over  7  mi!es  

Total  

7,684.r,42 
10,284.72:; 

tt,0.">S,(  K  )( » 
7,5S-',(  H  N  1 

5,57S.(Hto 
5,132,<lO(t 
4,1»UMH.K> 
1,«52,000 

8 
24 
45 

62 
76 
87 

m 

100 

2,4.H(»,(KHt 

4,1  is(  »,(Ki(» 
4,G«il  1,000 
4,240,000 
4,4f<(  1,(100 
:sSU(M)00 
l.»52,000 

6l,2:'.7,2»M 
8.26  miles 

51.2 

... 

2fi,:'.22,()iKi 
4.5  miles 

105 


IdCHiaJIN-^IRATIOT  LINE 


Actual 
Number  of 
Passengers 
on  Surface 
Line 

Estimated  Rapid 

Transit  Passengers 

Per  cent 

Number 

Number  of  pammgfim  tU&Mtg  hm  than  1  mile  

Number  of  pmrnafjin  ridiiiv  betweco  1  and  2  m3m .  . 
Number  of  pamtngm  riding  between  2  and  3  miiea  .  . 

Number  of  passengers  riding  between  3  and  4  miles  .  . 
Number  of  passengers  riding  between  4  and  5  miles  .  . 
Number  of  passengers  riding  between  o  and  6  miles 
Number  of  passengers  riding  between  6  and  7  miles  .  . 
fiwiriicr  of  pMMiitn  liifiBf  over  7  wHn  ....... 

8t901.452 
11,488,000 

ll^HMioo 

9,902,000 
8,380,000 
5,904,000 
1,120,000 
2396300 

8 
24 
45 

76 

87 
95 
100 

710,000 
2.710.000 
8360300 
«»150,000 
6360,000 
5,140,000 
1.030,000 
8308300 

59,261,452 
3.11  miles 

•  •  • 

29306^000 
422  miles 

WOODWARD  AVE.  LINE 

Actual 
Number  of 
Passengers 
on  Surface 

Estimated  Rapid 
Transit  Passengers 

Per  ocni 

Nimlier 

Nnmbtr  of  p^wfprr^  tHkag  leas  than  1  mile  .... 
Number  of  paaseufers  riding  betireen  1  and  2  miles .  . 

Number  of  passengers  riding  between  2  and  3  miles .  . 
Number  of  passengers  ridint;  between  3  and  4  miles  .  . 
Number  of  passengers  riding  between  4  and  5  miles  .  . 
Number  of  passeng^  riding  between  5  and  6  miles .  . 
Number  dt  pmamtgmiMag  l»tween  6  and  ftM  mto . 
Mumncr  01  putnfgBm  nowi  over      miies  •  .  .  .  . 

11343339 
HO8O3OO 
11300300 
10360,000 

7,42(\0(X) 
7300,000 

2300,000 
400,0<i(» 

8 
24 
45 

62 

76 
87 
93 
95 

910300 
3380,000 
6,340,000 
6,560,000 
5,WO,000 
6,360,0<X) 
2,620,000 

380,000 

mjoBifisiii 

23lBitki 

^46J 

•  *  » 

31,720300 
836miks 

IW 


APPENDIX  III 
D.  U.  R  Traffic  1915-1916 


The  traffic  figures  of  the  Detroit  United  Railway  city  hnes  have  been 
published  in  detail  in  the  191 5  Report  on  pages  280  to  285,  giving  the  statis- 
tics from  1904  to  1914.  The  same  information  is  here  brought  up  to  date, 
•'.  e.^  the  statistics  for  1915  and  1916  are  given. 


OPERATING  STATISTICS  OF  THE  DETROIT  UNITED  RAILWAY 

1915 


Name  of  Line 

P&ssengera 

Car  Miles 

Ou*  Hours 

Total 

Revenue 

Brush  

Onosstown  

27,805,857 
6,997.949 
8S32M08 

lt»,(i«>!t,370 
5,074,229 
14310^ 

2,298,146 
618364 
2.640362 

267306 
80307 
286338 

1,690,741 
764,770 
27,721,424 
S436M16 

838,482 
.502,887 
20,116,558 
9I.77«372 

197,116 
121,170 
2,788,608 
3375338 

22,709 
21,135 
295,925 
430^746 

4,425,432 
1,151,803 
15,055,605 
10,400315 

2,3!Hi,452 
1,145,829 
11,281,644 

7308318 

379,116 
195,111 
1,602355 
1383307 

43,045 
13384 
173.930 
130365 

Myrtle  .  

4M01,130 

0 

50,436,332 
7325,279 
16,026359 

90^08320 

0 

37,114,692 
5381.713 
12376378 

4,048,-565 
0 

4,536.466 

800361 
2,092,753 

417.138 

0 

;j04,759 
92371 
222.681 

Springwells  

Tnimoidl  

Woodwaid  

1,523,794 
7,049,226 
1,443,829 
55,207,827 

943,9«»2 
4,492, 10i» 
712,61(t 
41,543,391 

2(58,078 
600,191 
118,546 
5,330,709 

28,222 
75.505 
12,225 
55fl,21!» 

344310390 

3367312 

107 


anaumm  sTArancs  or  rm  iMmm  umtSD  railway 

191« 


Name  of  Line 

Car  Miles 

Car  Hours 

32,431, 1»5 
8,810,687 
4M77,!»1 

23,^47,086  i 
6,373,988 
17.77iM>18 

2.582,987 
(595,190 
3.201.2U3 

299,354 
94,739 
366.738 

Puiot-Thinl  Sc  

4,756,569 
1,751,889 
32,756,003 
8»,240,273 

3,133,570 
1,560,564 
24,1(M»,853 
28,039,417 

463,556 
198,30;) 
3,1 58,7  li> 
4,15(V376 

57,292 
27,058 
342,218 
454,702 

Grand  Belt  

Grosse  Pmnte  '.  . 

HamilttNl  

1,1«4,56S! 

20,o:«,:«8 

12,099,-582 

4.252.484 
1,190,006 

8,243,(534 

667,470 

2,008,482 
l,247,9tH> 

744122 
16,179 

217,662  ■ 
151,440 

Icfferaoii                                  .  • 

Myrtk  

60,072,693 
78.029 
50.261,462 

iBjmm 

37,120,393 
29,065 
43,068.565 
5.888,567 

4,699,912 
21,679 
5.287.001 
08.757 
2.284t581 

515,199 
4379 
599,726 
97,603 
247.446 

UBflflflnVtMi  .... 

Victor  ■  

WoodiNHid  

1,880,908 
7346.271 
1.890,866 
fl8.0ft3,539 

ijoas.403 

5,466,470 

916,157 

51,528,693 

309.749 

621,889 
124,513 
6,771,293 

34,973 
80,259 
12,453 
775,075 

417.780^44 

1 

1  292.M3.741 

39.541^ 

4.458.600 

108 


APPENDIX  IV 
D.  U.  R.  Operated  Trackage,  1901  to  1916 


A  tabulated  statement  of  the  surface  lines  in  the  City  of  Detroit  is  given 
here,  showing  the  increase  by  years  in  the  length  of  the  operated  tradcage  of 
the  system.  The  data  are  from  1901  to  1916.  inclusive,  giving  an  average 
increase  per  annum  of  3  302  nules  of  single  track.  It  will  be  noted  that  6  miks 
of  single  track  is  added  each  year  to  the  system  in  the  estimates  in  this  Report. 
Thus  the  added  facilities  oontemplated  in  the  building  program  are  on  a  moie 
liberal  scale  than  those  provided  for  up  to  the  i»esent 


LENGTH  OF  SINGLE  TRACK  OF  CITY  LINES 
DETROIT  UNITED  RAILWAY 


Year 

Length  of 
Stiirie  Track 
MOm* 

Increase  Over  ^ 
FEevious  Year 

t  

Year 

Ivcngth  of 
Single  Track 

Increase  Over 
Previous  Year 
Miitt  1 

1901 

17^563 

1900 

186u816 

.082  1 

1«02 

177.545 

1010 

187.884 

2J068 

1008 

17S.SS(» 

1.335 

1911 

192.670 

4.780 

im 

18(UM3 

1.313 

1912 

2<l0.4()2 

7.7^t2 

1006 

180.123 

.070»* 

1913 

2<K>.8(i<i 

.-104 

1006 

180.401 

.278 

1914 

206.885 

6.019 

1007 

185,67V 

5^178 

1015 

210899 

4.014 

1006 

185.784 

.145 

1016 

228.063 

17.184 

Average  increase,  1901-1916,  per  annum,  3.302  mBes  of  single  track. 
*  Exclusive  of  Car  House  and  Power  House  tracks.    **  Decrease. 


109 


APPENDIX  V 

Hie  Method  Used  to  Predict  the  Future  Populatlim  of  Detroit 
General 

The  statistical  numbers  are  represented  in  graphic  form  by  a  series  of 
points  referred  to  the  time  abscissa.  If  the  points  so  defined  arc  connected 
in  succession  by  straight  lines,  these  latter  wfl!  give  a  polygonal  contonr. 

The  problem  of  predictioii  is  to  derive  from  this  polygon  the  vahie  of  the 
ordinate  at  some  future  timepoint 

The  common  practice  of  making  the  prediction  consists  in  towing  a 
smooth  curve  approximating  the  contour  and  extending  it,  accofi&ig-  to  the 
taste  or  judtement  of  the  investigator,  to  the  time  limit  in  question.  This 
method  evidently  depends  upon  the  individuality  of  the  investigator  and 
actuaiy  results  in  widely  divergent  predictions,  although  based  on  the  same 
data,  if  the  sdution  is  undertaken  by  several  men  ind^endently,  however 
competent  they  may  be. 

If  by  the  use  of  complicated  analytical  work  a  curve  be  computed,  which 
actually  fits  the  given  points,  this  curv^e,  as  a  rule,  will  be  of  higher  order.  The 
value  of  the  ordinate  for  a  distant  abscissa,  figured  by  the  formula  found  for 
the  curve,  will  represent  a  prediction  contrary  to  common  sense,  as  proven  by 
many  trials  in  almost  every  case  of  this  nature. 

In  the  following  a  different  standard  solution  of  the  problem  will  be 
submitted. 

Pnipoaod  Method  of  Prcdictkm 

If  we  have  bot  two  observed  data,  in  other  words,  only  two  points  of  the 
polygon,  and  not  having  any  idea  of  the  magnitude  and  time  of  occurrence 
of  the  "forces'*  which  in  the  future  may  influence  the  ftinctkm  sought,  the 
only  rational  solution  of  the  problem  would  consist  in  assuming  that  the  phe- 
nomenon, to  the  timqMiint  in  question,  will  pursue  the  straight  course  defined 
by  cdnnectmg  the  given  points. 

This  sdution,  which  is  entirely  arbitrary,  but  which,  nevertheless,  is  the 
only  kigical  one,  would  represent  the  actual  facts  with  a  great  probability  of 
accuracy  if  the  line  would  1)e  extended  a  comparatively  short  distance  only. 
But  it  is  also  evident  that  this  probability  diminishes  when  the  extension 
becomes  relatively  long. 

According  to  the  assumption  made.  /.  c,  that  we  do  not  know  the  in- 
tensity and  time  of  action  of  the  potential  forces  governing  the  statistics,  there 
is  no  reason  to  assume  that  the  law  of  variations  of  this  probabilty  shaH 

tin 


not  be  a  linear  function,  so  that  if  we  denote  by  L  the  length  of  the  given 
straight  line,  and  by  L]  the  length  of  the  prolongation,  then  the  probability 

will  be  measured  by  the  fraction  — JT+u —  which  tends  toward  aero  if  Li 
becomes  very  large,  and  is  equal  unity,  when  Li  equals  zero,  in  other  words, 
if  the  last  given  pdnt  is  considered. 

Suppose  now,  that  the  figure  represents  a  plat  of  statistical  facts,  1,,  1,,  Ig, 
denoting  time  periods,  L  being  equal  to  li  4-  1,  +  1,,  and  L,  the  period  for 
which  the  prediction  is  sought  The  arithmetic  mean  of  die  values  of  the 
segments  Yab,  Ym,  Ybc,  Yea  would  furnish  the  soiution  Y,  if  the  probabilities 
of  each  of  the  Ya,  etc,  values  would  be  the  same.      Bat  the  probability  of 

each  value  Y,b.  Ym,  etc.,  Y«,  is  given  by  the  expression  _^   

where  Ln  denotes  the  distance  of  any  pair  of  points  considered  and  Lin  the 
length  of  the  extension  to  tlie  future  timepoint. 


Then  the  most  probable  value  of  the  statistical  fact  at  the  time  of  the 
prediction'  will  be 

V   

giving  the  length  which  is  the  resultant  of  the  weif^ted  individual  segments. 

l^ie  proposed  method  will  give  a  tmifonn  course  ui  predicting  future 
facts  of  statistics  and  the  prediction  so  made  should  give  rational  and  con- 
servative results,  for  normal  conditions  prevailinjs:  (lurinjr  the  time  considered. 

Mathematical  accuracy  is  obviously  impossible  in  a  problem  of  tiie  nature 
here  discussed.  It  is  believed,  however,  that  the  results  obtained  by  applying 
the  foregoing  theory  will  possess  a  greater  probability  than  the  predictions 
for  future  statistics  made  by  other  methods  in  use. 

In  applying  the  method  here  proposed  to  the  prediction  of  the  fatute 
growth  of  the  population  of  cities,  the  interval^  for  which  tiii  pfCdktioo  is  to 
he  made,  should  be  divided  into  several  parts  dependiqg  upon  the  ki^th  of 
this  interval,  and  a  prediction  ^lonld  he  made  for  eadi  of  these  parts  in  suc- 
cession so  as  t0  diminate  errors  as  much  as  possible. 

For  large  American  cities  a  prediction  based  on  early  statistics  does  not 
Icaul  to  good  results.  These  cities,  m  the  last  20-25  y«"^  have  undergc^ne  tre- 
mendous changes,  due  to  the  exceedingly  heavy  immigration  in  recent  decades, 
to  the  introduction  of  rapid  transit  facilities,  and  also  due  to  the  enormous 
growth  of  commerce  and  industries. 

The  sudden  change  in  conditions  is  still  more  marked  in  the  "greater 
cities"  where  the  p(^pulation  in  the  recently  annexed  territories  grows  ont  of 
all  previous  proportions  due  largely  to  the  one  fare  zone  system  and  Ae  ex- 
tensions of  city  improvements. 

In  the  praf  iction  made  in  this  Report  for  the  City  of  Bttroit  the  data 
previous  to  1900  were,  therefore,  disregarded  and  it  was  assumed  that  in 
1920  the  one  million  mark  will  be  reached.  The  interval  between  1920  and 
1950  was  then  divided  into  three  periods,  each  ten  years  long,  and  the  pre- 
dictioa  for  1930  made  This  result  wai  considered  as  accurate  and  the  fur- 
ther prediction  for  1940  made  on  the  basis  of  data  from  1900  to  1930.  The 
1950  prediction  then  is  the  resuh  of  the  data  from  1900  to  1940. 

In  order  to  check  this  method  as  applied  to  population  growth,  a  number 
of  figures  were  made,  taking  early  statistics  of  the  City  of  London,  and  more 
recent  statistics  of  Philadelphia.  Manhattan,  etc.,  and  predicting  tlie  population 
of  these  for  the  timepoint  of  the  last  available  census.  It  has  been  found  that 
the  prediction  so  made  fell  below  the  actual  by  two  to  ten  per  cent  and  this 
leads  to  the  conclusion  that  the  method  here  proposed  can  be  considered  con- 
servative and  safe. 


112 


APPENDIX  VI 
Cost  Estinaatiea 

The  unit  prices  used  in  arriving  at  a  fair  construction  cost  are  based 
upon  recent  figures  submitted  for  work  of  similar  nature  in  the  large  eastern 
cities.  It  may  be  stated  that  a  reasonable  allowance  has  been  made  for  the 
increase  in  cost  of  material  and  labor,  considerably  in  excess  of  the  ante  bellum 
prices.  The  estimate  upon  which  the  financial  plan  is  based  can  thus  be  con- 
sidered safe  and  within  limits  of  construction  costs  to  be  realized  in  the  near 
future. 

UNIT  PRICES  USED  IN  ESTIMATING  RAPID  TRANSIT 
IMPROVEMENTS  FOR  THE  CITY  OF  DETROIT 

Cost  Per  Linear  Foot  of  Single  Track  Structure 


Business  District  Subway   $173.00 

Residence  District  Subway   1 59.00 

Overhead  Railway  on  Street   66.00 

Overhead  Railway  on  Private  Right-of-Way   53-00 

Subway  Stations,  250-foot  Platforms  for  double  track   75,000.00 


Overhead  Railway  Stations,  250-foot  Platforms  for  double  track. .  40,000.00 


113 


Woodward  Airame  RoBte 


1.  Atwatcr  Street  Stub  Tcrniinal 

Portal  construction   ^0^00 

Overhead  raUway   lO^W  W 

OrcrlieMl  rmtlwaar  itation   mfimm 

2.  Cadillac  Square  Stub  Tcnntnal 

Complete  

3.  Subway  from  Jefferson  to  Adams  Street, 

0.67  mile 

Double  track  construction   W,OT9,000.00 

Three  stations      .   T??'Snnnn 

One  transfer  station   oV'lCinnn 

Ducts  and  pq>es   21,000.00 

■p^tiWg.fa^,   iSSooS 

Sewer  construction   .  uo^mmi 


Subway  from  Adams  Street  to  North  of 
Grand  Boulevard,  2.56  miles 

Double  track  comtmctioii  •^'t^^  SSS  S 

Fhre  stations  2&SSSSS 

Sewer  construction  WIMJwWW 

Overhead  Railway  from  Grand  Boulevard 
to  Manchester  Avenue,  3  miles 

Solid  deck  construction  

Six  Stations  •    •  ^'S22S2 

Grand  Boulevard  portal  322s2X 

iMd  cstile  fiOMWlW 


ii78,ooaoo 

300,000.00 


IJMNMXIQlOO 


2,490,|QOQuOO 


Railroad  construction  total   ^-^^'SSS  22 

lA^  ior  Cootiugcocics  and  Engineenng   i,.j«9,uou.uu 

110,647,00000 

Interest  during  construction  »  1,082,000.00 


Total  cost 


911,699,000.00 


Michigan-Gratiot  Route 


1.  Subway    Under    Beech- Adams  Streets, 

from  National  Avenue  to  Hastings 
Street,  1.60  miles 

Double  track  construction  $3,120,000.00 

Three  stations   ,  225,000.00 

One  transfer  station   150,000.00 

Heal  estate  .   200,000.00 

2.  Overhead  Railway  on  Private  Right-of- 

way,  Along  Michigan  Avenue,  5  miles 

Solid  deck  structure  ............  $2,750,000.00 

Eight  stations   320,000.00 

Right-of-ws^   800,000.00 

Portal  at  National  Avenue   TOyOOOuOO 

3.  Overhead  Railway  on  Gratiot  and  Forest 

Avenues  from  Hastings  Street  to  Ste. 
Oair  Heights,  4.75  miles 

Solid  deck  construction  ,    ,    *    .    ♦   2.600,000.00 

Eight  stations  ...............  320,000.00 

Portal  at  Hastings  Street   TOjOOOiW 


15%  for  Gmtingencies  and  ^igineering 


$3,095,000.00 


3,940,000.00 


Interest  during  construction 
Total  cost    .  . 


2M00OJ0O 

itomMiojQo 

1,504^.00 

$12,219,000.00 
1,231,000.00 


fl3,45Q,O00ilU 


115 


1.  Subway  from  Cadillac  Square  under  Con- 

gress Street  to  St.  Antoine  Street, 
0.33  mifc 

Dovklk  trade  comtniction  *?^'SnS 

2.  Subway  from  Woodward  Avenue  under 

Fort  Stwet  to  3rd  Avenue,  0.5  mik 

Bubble  tndc  comlnidion  n>150,000.00 

OnTitiSw  ^^^^   100,000.00  1^,000.00 

3.  Overhead  Railway  on  Fort  Street  from 

Third  Avenue  to  Woodmcre  AvcBne, 
4.5  miles 

Solid  «leck  coastrnctioii     .  •''S'SS  S 

Seven  stations  •     •  ^SfiSrSl       n  nm  nnn  nil 

Portal  at  Third  Avenue   lymM 

4.  Overhead  Railway  on  Private  Right-of- 

way,  Between  Congress  and  Fort 
Streets,  from  St  Antoine  to  Townsend 
Avenue,  Thence  on  Jeierson  Avientie 
to  City  Limits 

Solid  deck  constmctkm  

Ten  stationi    400,000.00 

i^^?^  3HP0O.0O  4,044,000.00 

$8374,00000 

11%  for  Contingencies  and  Enginecriai    ..........  1,320,000.00 

110.194,000.00 

..  ....  _  ji,. .  . .  ■■  ..       —  1  flBAflBBfln 

imviniGPoii    ,•»•••*    «••**•    •  •^■"i""""""' 
Total  cost  tlUOMOWW 


ADDITIONS  AND  BXTBNSiONS  AFTER  COMPLETION  OP 
INITIAL  BUILDING  PROGSAM 

Ovinfaead  Raihvi^ 

1.  Woodward  Avenue  Extension  from  Man- 

chester Avenue,  NcMrth 

6  miles  of  donUe  txatk  ooottmctioii  $3,300,000.00 

lOstatioiit   400,000.00  $3,700,000.00 

2.  Gratiot  Avenue  Ejcteosicm 

4%  miles  of  double  tndc  constnictioii   2,500j000.€0 

7  stations   280.000100  2,780,000.00 

3.  Forest  Avenue  Extension 

S)i  niles  of  donUe  track  cooftriKtioit  2jmjOOOM 

ft  statioiis  atOyOOftjOO  aWff»j'» 

4.  Fort  Street  Extension 

miles  of  double  track  construction  l^XNMlOOilO 

S  itatioiii    80.000.00     1 j 

5.  Michigan  Avenue  Extension 

%  mile  of  double  track  constmctkMi  a0O.OOOi» 

1  statkm   lOflOOm 

6.  Grand  River  Extension 

3%  miles  of  dooMa  trade  comtniction    ......  IjBOQyOOOiW 

AstatMMii  iaOjOOO.00  1.860j000.00 

7.  Jos.  Campau,  Grand  Boulevard  and  Ltver- 

nois  Route 

A.  Grand  Boulevard  Subway 

2%  miles  of  construction   .  4.125,000.00 

B.  Jos.  Campau  Overhead  Extension 

4%  miles  of  douUe  track  construction  ^SOOyBBQuOO 

7  stations   MyBOOtOO  S,78IMMMMN» 

C.  Livernois  Overhead  Extension 

4)i  nules  of  dotrfde  track  constmctioii   .......  2.500,000^0 

7  statkMs  MMNiaOO  2.780.00Qj|» 

$21,745,000.00 

Add  for  real  estate  and  transfer  statioiis   3,500,000.00 

]fl%  for  Contingencies  and  Eni^BeeriQf   3.750,000.00 

IttteMst  during  eoMtnction  SiTVXMMKMiO 

Total  coal  


117 


Mjpwmmm  vii 


WaafHopMrnm  Statistics 

The  table  here  published  gives  the  name  of  the  industrial  establishments 
and  department  stores  in  Detroit  having  employed  in  1916  more  than  500  per- 
sons. The  number  of  workers  employed  in  each  of  these  places  is  stated  for 
the  years  1914  and  1916,  indicating  the  rapid  growth-  of  the  industries  in  al- 
most cvcfy  case.  Most  of  these  establishments  are  sho>wn  on  diagram,  page  39, 
and  can  be  identified  by  the  location  given  in  the  tidble. 

The  data  from  which  the  table  was  cominled  were  fnmished  by  the  De- 
ptftment  of  Labor  of  the  State  of  Michigaa 

MCTOitlBS  MMD  8T0US  IN  DBTSOIT  BMPMYINO  0¥BK 

SUM  WOKKKICB 

NO.  OF  WORKOtt 

MMMM  tOCATION  1916  1914 

Foffil  Motor  Compwr  HigM«id  Ptak  tMM  IW 

Pidord  Motor       CMSpav*  -  Blvd.  &  Mc  Bdt  Liiw   10,693  4,387 

Dodge  Brothers   Hamtramck   9,781  3,152 

Stadcbaker  Corporation   105  Piquette  . . ......  J  gajO  6,616 

StnddMlter  Corporation  Plant  3,  Clarke  &  W.  Jeff....  j 

Chalmers  Motor  Car  Company  E.  Jeff.  &  New  Belt  Line   5,078  2,454 

CadUUc  Motor  Car  Company  Factory  and  General  Offices,  Cast  ft  Ara- 

sterdam     3.984  5,057 

Morgan  &  Wright  Foot  of  Bellevue   3,603  2,677 

Hudson  Motor  Car  Company  Jefferson  &  Connors  Road   3^56  1,005 

Tinktn-Detrait  Asdi  Goapmgr  Cbik  ft  CMk  ....    8,029  1,483 

Bwnii^ts,  A.  M.  Conptlif  Sacond  &  Burroughs   2^04  2j0i3 

Detroit  Edison  Company  W  Wash.  Blvd.  at  State....   2,832  .... 

Northway  Motor  ft  Mfg.  Ca  M«yl>ery  Gd  ft  G  T.  RR.   1^  1^1 

•MidiigMi  State  Td.  Cft   20  Clifford  at  Wash.  Blvd   2,533  2,808 

Parke-Davis  &  Company  743  Atwater  at  McDougall   2,388  2,125 

Continental  Motors  Co....,  3001  E.  Jeff,  and  Bezner   2,152  1,041 

Detroit  Co|i.  ft  Brass  Rollg.  MiIb...W  Oailc  Aw.  bdow  WabMh....   3,008  IfiU 

mOuey  Wheel  Company   1208  to  1250  Military  Ave   2,041 

American  Car  &  Fdy.  Co  Russell  &  Ferry  Pen.  Car.  Dpt   1,978  .... 

Maxwell  Motor  Company  Oakland  Avenue    l,tM  1,1V4 

Solvv  Process  Gonqmr."-  Delray    1,691  IJVf 

QMlinac  Motor  Car  Ca  No.  3.  Fdy.  &  Sht.  Metol  Dept,  500  TronlQr. . .  1,607  ... 

Wilson  Body  Co.  C  R.  ....Clay  and  G.  T.  RR.   1,635  829 

liaison  Co.  J.  L.  (Dept  Store).... Gratiot  ft  Farmer   1,4M  113 

Htq>p  Motor  Our  Corporation  Milwaukee  &  Mt.  Elliott...   1,406  111 

Timken-Detroit  Axle  Co.  No.  3  Waterloo  &  Detroit  RR   1,356  .... 

Hayes  Mfg.  Co.  Maybury  Gd.  &  G.  T.  RR   1,347  340 

Detroit  City  Gas  Coaqtaiqr*  CHiord  ft  Washtagtoa   I,31i  1,164 

Detroit  Screw  Works  Franklin  &  Riopelle   1,287  370 

Murphy  Chair  Company..,  D.  G..H.  ft  Milwaukee  Junct   1,3SS  04t 

Newcomb-Endicott  Co.  Dpt  Store...  190  Woodward  Avcmie   1,3IB  1.383 

IIS 


HO.  OF  WORKERS 

NAME                                                      LOCATION  1916  1914 

Michigan  Malleable  Iron  Co           .Gould,  Anderson  ft  Crossly   l.l«9  803 

Aluminum  Castings  Co  ....Chene  &  Finley   1.151  358 

-  Detroit  Steel  Products  Co  2250  E.  Gd.  Blvd.  &  Griff  en   1,149  586 

Cadillac  Motor  Car  Co.  No.  3  Body  &  Trimmings  Depts.,  900  W.  Fort 

and  23rd    1,051 

-  Crowley-Milner  Co.  Dept.  Store  Gratiot.  Farmer.  Monroe  &  Library   1,031  TBS 

Briggs  Mfg.  Co.  (Plant  A)  Hamtramck,  Leuschner  Av.  &  G.  T.  RR.  1,019  990 

Michigaa  Alkali  Co.  ...Village  of  Ford    1^2  922 

-American  Lady  Corset  Co  West  Fort  &  6th   1,003  833 

Great  Lakes  Engineering  Wks  River  Rouge,  foot  of  Rivard   983  907 

*-  Detroit  Stove  Works  1320-1360  E.  Jefferson  Ave   883  785 

Saxon  Motor  Company  Beau  fait  &  Waterloo   930  220 

Anderson  Electric  Car  Co  Clay  &  Riopelle   915  600 

Detroit  Lubricator  Company  1178  Trumbull  &  G.  T.  RR   904  420 

-  Peninstilar  Stove  Company  W.  Fort  8th  ft  lOtli   884  907 

Herbert  Mfg.  Ca  576  Kirby  West   867  928 

—  Stearns  &  Co    Frederick.  Jefferson  &  Bellevue   853  929 

-  Scotten,  DiUon  Company  1147  to  1161  W.  Fort   847  1,361 

^  Ford  Motor  Co.  (Servke  Sta.)  15G0  Woodward  ft  Boulevard   844  .... 

-Buhl  Malleable  Company  Adair  ft  Wight   843  625 

San  Telmo  Cigar  Mfg.  Co.  510  E.  Forest  Ave.   838  1.184 

Diamond  Mfg.  Co  Artillery  ft  Muster   799  321 

-  Gen'l  Aluminum  &  Brass  Mfg.  Co.. .  .East  Grd.  Blvd.  &  St  Aldmi   741  431 

Michigan  Copper  &  Brass  Ca  1611  W.  Jeff.  Avenue   734  315 

-  Michigan  Stove  Co  1022  E.  Jeff.  Avenue  &  Adair   700  874 

-  Fischer  Qosed  Body  Co.  (Bch)  Milwaukee  &  Deqntndre  )  ,  o-i  90^- 

Fischer  Closed  Body  Co.  (Bch)  Harper  &  Hastings  J 

-  Paige-Detroit  Motor  Car  Co  McKinstry  &  W.  Fort   656  294 

~  Detroit  Creamery  Company  Cass  ft  Grand  Rirer   650  307 

*  Qayton  &  Lambert  Mfg.  Co.  201  Piquette  Ave.,  Trombley  &  Beaubien.  016  87 

Michigan  Statiipiwg  Con^any  7S0  Bellevue,  Mack  Ave.  and  outer  Belt 

Line    046  327 

Wayne  Cigar  Company..  909  St.  Aubin  ft  East  Fomt   625  996 

American  Blower  Company  1400  Russell    621  573 

Edmund  &  Jones  Mfg.  Co  436  Lawton  Ave.   617  463 

Mereter.  J.  A  243  Beecher   *  .   007  0 

Pingree  Co.,  The  102-104  Jefferson    001  530 

Pennsylvania  Salt  Company  Wyandotte   SBS  314 

^  National  Can  Company                 .Mihrankee.  Jet  Gd.  Blvd.  ft  D.  ft  M.  RR.  381  401 

Detroit  Wire  Spring  Compaiqr  Russell  &  Westminster  Ave   880  236 

-  Acme  White  Lead  &  Color  Wks  Hamtramck,  1740  St  Aubin  &  M.  C.  RR.  573  5M 

Michigan  Lubricator  Company  661  Beaubien   501  438 

Finck  ft  Co..  W.  M  1100.1174  Gratiot    550  573 

Detroit  Forging  Co  130  Mt  Elliott  Avenue   SSO  386 

Winkley  Company   806  West  Warren   554  283 

"^Long  Mfg.  Company  East  Grd.  Blvd.  &  Cameron  Ave   549  384 

Chicago  Pneumatic  Tool  Co  Seomd  &  Amsterdam   641  380 

Russell  Wheel  &  Fdy.  Co  Chene  &  Belt  Line  RR.   384  888 

Detroit  Pressed  Steel  Co  1800  Mt  Elliott  Ave.   532  188 

DetnNt  Sted  Castings  Co  1243  Michigan  Avenue   SB  185 

Semet-Solvay  Company   West  Jeff.  &  Solvay   515  HO 

Briscoe  Mfg.  Company  1443  Woodward  Av.  &  Baltimore   515  510 

Larned,  Carter  Co  Cor.  8th,  Howard  &  Abbott   514  515 

Detroit  l%q>  Building  Co.  Wyuidotte,  foot  of  Octoaas   513  316 

Fairview  Fdy.  Company  .....Foot  of  Vanilla  ,  808  BOB 

-  Detroit-Princess  Mfg.  Co  207  East  Larned   801  711 

119 


GENERAL  INDEX 


Annual: 

operatmg  statistics 
operated  trackage 

Aim  of  Detroit  .  . 

B 

Bonds: 

issued  by  city  . 
issiwd  by  compaiqr 
fcttrcnwnt  of 


107,  lOB 
.  .  109 
.    .  19 


69,  71,  79,  90 
.         71,  79 

.  .  .  ea,  89 


commencement  of  rapid  transit, 
investment  per  capita    .  . 

investment  ratio  

operatins  ratio  

population  

rapid  transit  types  .... 


19 
89 
54 

m 

80 

17 


Boilding: 

permits   

procram,  rapid  transit 

program,  curtailed  .  . 


34.  42. 


Capitalization  71, 

Charter,  Detroit  

Chicago: 

commencement  of  rapid  transit  . 

investment  per  capita  

population  of     ......  fiS, 

rapid  transit  types  

traffic  density  


Commission  control 


ive 

Cost  of: 
elevated 


55,  56,  63, 
>    •  51, 


right  of  wiQT 
service  .  . 

Cost  Estimates 


49 
SO 


70 
94 

19 
89 
89 
47 
27 

94 

67 

62 
82 
47 
54 

113 


Crosatown  Line: 

transit  traffic 
transfer  tn^  . 


38.  105 


Detroit:  WMm 
area  of  t9 

building  permits      .......  38 

charter  debt  limit  ...  68^  70.  94 
deficit  from  Plan  C  90 

factory  location      .    .    .    .    .  38,  118 

investment  per  capita  89 

population  growth  17,  37 


Detroit  United  Railway: 
operating  statistics 
operated  tradcage  . 


107.  108 
.   .  100 


Diagmna: 

area  of  Detroit  

car  miles  per  hour  

didmrsement  for  investment  .  .  . 
disposition  of  operating  revemie 
distribution  of  population  .... 
equity  in  investment  ..... 
8  row  til  of  population  and  trafiic  .  . 
initial  building  program  .... 
location  of  employment  .... 
median  lines  of  population  .  .  . 
overhead  raiHray  on  street 
overhead  railway  on  private  rig^- 

of-way  

passengers  per  annum  

passengers  per  mile  of  track  .    .  . 

passengers  per  car  mile 

percentage  of  total  passengers  using 

rapid  transit  .  .  . 
population  by  mile  zones 
population  prediction  . 
right-of-way  appraisal  . 
revenue  ri^  per  capita 
rush  hour  traffic  . 
subway  transfer  station 
transfer  by  tines  .  .  . 
transfer  by  mile  of  track 
transfer  on  Woodward  Ave.  .  .  . 
transfer  on  Michigan-Gratiot  Ave. 
transfer  on  Jefferaon'Grand  Siver 

Ave.  


90 
65 
86 


87 
28 
48 
89 
36 
44 

45 
96 
96 
66 

104 
18 
60 
46 
61 


100 
101 


for 


38^  118 

71,  77 


131 


w 

Fiactofy  locattoii    ,  M 

Fare: 

 m,  m 

on  ncf'VKC  W 

incresse  of  .11 

single,  wnlonn  .....     Si,  W 

Financing: 

 •• 

cost  of  rapid  transit  ttnictUfV    .    .  118 
passengers  carried  ......  27 

transit  traSc  .  M,  lOS 

ra^  trannt  on   .  41 

traffic  density  2? 

tfansfer  traffic  W 

O 

Grand  Boulevard: 

cost  of  rapid  transit  stf'nctMre    .   .  117 


cost  of  rapid  transit  structure    .    .  117 
on  ^1 


Kuiin  oi  •  *»t 

dMHt  and  loug' 


Interest  rate   69,  72,  83 


J 

J^erson  Avcnot: 

oMt  of  rapid  traaril  stradnrc  .  .  IM' 
passengers  carried  ......  27 

fiqiid  transit  on  41 

n^id  transit  traiBc     .    .    .    .  31,  IW 
 27 

■ier  'traffic  30 

mm 

License  lor 


If  edi«B  Hues  HO 

Michigan-Gratiot  Avenue: 

cost  of  rapid  transit  strudive    .   .  US 

passengers  carried  27 

rapid  transit  on  .    .    .        .    .  .41 

transit  traffic  ....     33,  108 

traffic  dcMsllir  27 
iruwicr  trauK   .......  w 

M 

New  York: 

population  of     .......  58 

rapid  transit  tjrpes   47 

subway  service   33 

•    •   ♦  '  •   •   •    *  SET 

o 

Operating  expenses    ......  57 

Operating  incooM  ....     57,  72,  81 

Operating  ratio  57,  66 

Boston      .  88 

Brooklyn  38 

Operating  revenue    .    .  57.  68,  83,  72.  81 

Operating  statistics  107,  108 

Overhead  Railwif : 

cost  of   .    ,    .  3i 

typeS'  of    ..,..»»•»  47 

conqiaiqr    .......  67 

municipal   67,  70 

partaer^ip  87 

P 

,   .  17, 87,  8i 

commencemrnt  of  n^d  transit  .  .  13 
population  of     .......  38 

PopnlatiM  of  Dofvoit: 

hy  mile  loiics    .......  17 

enqtlojrment  of  .    *   .   .    •    .    .  38 

densi^  of     .....     19,  21,  37 

estimate  of  future  .    .    .    .  21,  58,  110 

growth  of     .......  17,  37 

of  40 

of   It 

.iat7l;  74.7%  3B 


GENERAL  INDEX 


123 


ra<iB 


Sapid  Transit  la  Detroit: 
capacity  of    .  . 
complete  system 
cost  of  ... 

initial  .... 
problem  defined  . 
program  .  .  . 
traffic  ... 
types  of  .  .  . 
Woodward  Avenue 


34 


.  33 

.  41 

82,  113 

.  88 

.  40 

.  18 

42.  49 
32,  108 

.  42 


15, 


Soport  of  1915  ...... 

Riding  habit     .  24. 

8 

Service   54. 


25 
60 

90 


Sinking  fund  .   89 

Subway: 

cost  of  82,  113 

on  Woodward  Avenue  .....  ^ 

on  other  streets   40 

Surface  Lines: 

opacity  of   33 

congestion  on  ai»  63 

extensions  of   49 

financing  of   69 

passengers  carried  per  line   ...  27 

passengers  carried  per  mfle  of  trade  27 

speed  on    ...    .    .    ....  63 

transfer  count  28,  99 

of  88,  TV 

 81^  TOt  78^  86 


Tine  saving  .   .  . 
Trackage,  D.  V.  R. 
Traction  fund    .  . 


.  .  103 
.72.  85 
.  51,  87 

density  of  27 


growth  of 
riding  habit 
rudi  hour  . 
rapid  transit 


21.  25 
24.  60 

9Nli 

.32,  103 
.28»  88 


cost  of  rapid  transit  structure      83,  114 

passengers  carried   ......  27 

rapid  transit  on  .  .  ■.  .33,  40,  42 
rapid  transit  traffic  ....      32,  105 

traffic  denaily  27 

transfer  traflk  S3,  U 


*  *  t.  f  •  • 
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COLUMBIA  UNIVERSITY  Ul 


OCT  24  ISM 


